Document:

EXHIBIT
10.1

 

 

 

CREDIT AGREEMENT

dated as of

November 8, 2006

among

MARVELL TECHNOLOGY GROUP LTD.,

THE LENDERS PARTY HERETO,

CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Administrative Agent,

LASALLE BANK NATIONAL ASSOCIATION,

as Syndication Agent

and

KEYBANK NATIONAL ASSOCIATION

and

COMMERZBANK AG,

as Co-Documentation Agents

CREDIT SUISSE,

as Sole Lead Arranger and Bookrunner

 

 

 

TABLE OF
CONTENTS

	
   

  	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 1

  	
   

  	
   

  
	
   

  	
   

  	
  Definitions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Defined
  Terms

  	
   

  	
  1

  
	
  Section 1.02.

  	
   

  	
  Classification
  of Loans and Borrowings

  	
   

  	
  24

  
	
  Section 1.03.

  	
   

  	
  Terms
  Generally

  	
   

  	
  24

  
	
  Section 1.04.

  	
   

  	
  Accounting
  Terms; Changes in GAAP

  	
   

  	
  25

  
	
  Section 1.05.

  	
   

  	
  Pro
  Forma Calculations

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 2

  	
   

  	
   

  
	
   

  	
   

  	
  The Loans

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Commitments

  	
   

  	
  25

  
	
  Section 2.02.

  	
   

  	
  Loans

  	
   

  	
  26

  
	
  Section 2.03.

  	
   

  	
  Requests
  to Borrow Loans

  	
   

  	
  26

  
	
  Section 2.04.

  	
   

  	
  Funding
  of Loans

  	
   

  	
  27

  
	
  Section 2.05.

  	
   

  	
  Interest
  Elections

  	
   

  	
  27

  
	
  Section 2.06.

  	
   

  	
  Termination
  of Commitments

  	
   

  	
  29

  
	
  Section 2.07.

  	
   

  	
  Payment
  at Maturity; Evidence of Debt

  	
   

  	
  29

  
	
  Section 2.08.

  	
   

  	
  Scheduled
  Amortization of Loans

  	
   

  	
  30

  
	
  Section 2.09.

  	
   

  	
  Optional
  and Mandatory Prepayments

  	
   

  	
  30

  
	
  Section 2.10.

  	
   

  	
  Fees

  	
   

  	
  33

  
	
  Section 2.11.

  	
   

  	
  Interest

  	
   

  	
  33

  
	
  Section 2.12.

  	
   

  	
  Alternate
  Rate of Interest

  	
   

  	
  34

  
	
  Section 2.13.

  	
   

  	
  Illegality

  	
   

  	
  34

  
	
  Section 2.14.

  	
   

  	
  Increased
  Costs

  	
   

  	
  35

  
	
  Section 2.15.

  	
   

  	
  Break
  Funding Payments

  	
   

  	
  36

  
	
  Section 2.16.

  	
   

  	
  Taxes

  	
   

  	
  37

  
	
  Section 2.17.

  	
   

  	
  Payments
  Generally; Pro Rata Treatment; Sharing of Set-offs

  	
   

  	
  38

  
	
  Section 2.18.

  	
   

  	
  Lender’s
  Obligation to Mitigate; Replacement of Lenders

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 3

  	
   

  	
   

  
	
   

  	
   

  	
  Representations and
  Warranties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Organization;
  Powers

  	
   

  	
  40

  
	
  Section 3.02.

  	
   

  	
  Authorization;
  Enforceability

  	
   

  	
  41

  
	
  Section 3.03.

  	
   

  	
  Approvals;
  No Conflicts

  	
   

  	
  41

  
	
  Section 3.04.

  	
   

  	
  Financial
  Statements; No Material Adverse Change

  	
   

  	
  41

  
	
  Section 3.05.

  	
   

  	
  Properties

  	
   

  	
  42

  
	
  Section 3.06.

  	
   

  	
  Litigation
  and Environmental Matters

  	
   

  	
  43

  
	
  Section 3.07.

  	
   

  	
  Compliance
  with Laws and Agreements

  	
   

  	
  43

  

 

 

	
  Section 3.08.

  	
   

  	
  Investment
  Company Status; Regulatory Restrictions on Borrowing

  	
   

  	
  43

  
	
  Section 3.09.

  	
   

  	
  Taxes

  	
   

  	
  43

  
	
  Section 3.10.

  	
   

  	
  ERISA

  	
   

  	
  44

  
	
  Section 3.11.

  	
   

  	
  Disclosure

  	
   

  	
  44

  
	
  Section 3.12.

  	
   

  	
  Subsidiaries

  	
   

  	
  44

  
	
  Section 3.13.

  	
   

  	
  Insurance

  	
   

  	
  44

  
	
  Section 3.14.

  	
   

  	
  Labor
  Matters

  	
   

  	
  45

  
	
  Section 3.15.

  	
   

  	
  Solvency

  	
   

  	
  45

  
	
  Section 3.16.

  	
   

  	
  Acquisition
  Documentation

  	
   

  	
  45

  
	
  Section 3.17.

  	
   

  	
  No
  Set-Off; Ranking; Immunity

  	
   

  	
  45

  
	
  Section 3.18.

  	
   

  	
  Other

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 4

  	
   

  	
   

  
	
   

  	
   

  	
  Conditions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Closing
  Date

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 5

  	
   

  	
   

  
	
   

  	
   

  	
  Affirmative Covenants

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Financial
  Statements and Other Information

  	
   

  	
  50

  
	
  Section 5.02.

  	
   

  	
  Notice
  of Material Events

  	
   

  	
  53

  
	
  Section 5.03.

  	
   

  	
  Information
  Regarding Collateral

  	
   

  	
  53

  
	
  Section 5.04.

  	
   

  	
  Existence;
  Conduct of Business

  	
   

  	
  54

  
	
  Section 5.05.

  	
   

  	
  Payment
  of Obligations

  	
   

  	
  54

  
	
  Section 5.06.

  	
   

  	
  Maintenance
  of Properties

  	
   

  	
  55

  
	
  Section 5.07.

  	
   

  	
  Insurance

  	
   

  	
  55

  
	
  Section 5.08.

  	
   

  	
  Casualty
  and Condemnation

  	
   

  	
  55

  
	
  Section 5.09.

  	
   

  	
  Proper
  Records; Rights to Inspect

  	
   

  	
  55

  
	
  Section 5.10.

  	
   

  	
  Compliance
  with Laws

  	
   

  	
  56

  
	
  Section 5.11.

  	
   

  	
  Use
  of Proceeds

  	
   

  	
  56

  
	
  Section 5.12.

  	
   

  	
  Additional
  Guarantees and Collateral

  	
   

  	
  56

  
	
  Section 5.13.

  	
   

  	
  Further
  Assurances

  	
   

  	
  59

  
	
  Section 5.14.

  	
   

  	
  Separateness

  	
   

  	
  59

  
	
  Section 5.15.

  	
   

  	
  Ratings

  	
   

  	
  59

  
	
  Section 5.16.

  	
   

  	
  Permitted
  Subordinated Debt

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 6

  	
   

  	
   

  
	
   

  	
   

  	
  Negative Covenants

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Debt;
  Certain Equity Securities

  	
   

  	
  59

  
	
  Section 6.02.

  	
   

  	
  Liens

  	
   

  	
  61

  
	
  Section 6.03.

  	
   

  	
  Fundamental
  Changes

  	
   

  	
  62

  
	
  Section 6.04.

  	
   

  	
  Investments,
  Loans, Advances, Guarantees and Acquisitions

  	
   

  	
  62

  

 

 ii
 

 

	
  Section 6.05.

  	
   

  	
  Asset
  Sales

  	
   

  	
  63

  
	
  Section 6.06.

  	
   

  	
  Sale
  and Leaseback Transactions

  	
   

  	
  65

  
	
  Section 6.07.

  	
   

  	
  Hedging
  Agreements

  	
   

  	
  65

  
	
  Section 6.08.

  	
   

  	
  Restricted
  Payments; Certain Payments of Debt

  	
   

  	
  65

  
	
  Section 6.09.

  	
   

  	
  Transactions
  with Affiliates

  	
   

  	
  66

  
	
  Section 6.10.

  	
   

  	
  Restrictive
  Agreements

  	
   

  	
  66

  
	
  Section 6.11.

  	
   

  	
  Amendment
  of Material Documents

  	
   

  	
  67

  
	
  Section 6.12.

  	
   

  	
  Change
  in Fiscal Year

  	
   

  	
  67

  
	
  Section 6.13.

  	
   

  	
  Debt
  to Total Capitalization

  	
   

  	
  67

  
	
  Section 6.14.

  	
   

  	
  Fixed
  Charge Coverage Ratio

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 7

  	
   

  	
   

  
	
   

  	
   

  	
  Events of Default

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 8

  	
   

  	
   

  
	
   

  	
   

  	
  The Administrative Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Appointment
  and Authorization

  	
   

  	
  71

  
	
  Section 8.02.

  	
   

  	
  Rights
  and Powers as a Lender

  	
   

  	
  71

  
	
  Section 8.03.

  	
   

  	
  Limited
  Duties and Responsibilities

  	
   

  	
  71

  
	
  Section 8.04.

  	
   

  	
  Authority
  to Rely on Certain Writings, Statements and Advice

  	
   

  	
  72

  
	
  Section 8.05.

  	
   

  	
  Sub-Agents
  and Related Parties

  	
   

  	
  72

  
	
  Section 8.06.

  	
   

  	
  Resignation;
  Successor Administrative Agent

  	
   

  	
  72

  
	
  Section 8.07.

  	
   

  	
  Credit
  Decisions by Lenders

  	
   

  	
  73

  
	
  Section 8.08.

  	
   

  	
  Other
  Agents and Arranger

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Article 9

  	
   

  	
   

  
	
   

  	
   

  	
  Miscellaneous

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
   

  	
  Notices

  	
   

  	
  73

  
	
  Section 9.02.

  	
   

  	
  Waivers;
  Amendments

  	
   

  	
  74

  
	
  Section 9.03.

  	
   

  	
  Expenses;
  Indemnity; Damage Waiver

  	
   

  	
  76

  
	
  Section 9.04.

  	
   

  	
  Successors
  and Assigns

  	
   

  	
  77

  
	
  Section 9.05.

  	
   

  	
  Survival

  	
   

  	
  80

  
	
  Section 9.06.

  	
   

  	
  Counterparts;
  Integration; Effectiveness

  	
   

  	
  81

  
	
  Section 9.07.

  	
   

  	
  Severability

  	
   

  	
  81

  
	
  Section 9.08.

  	
   

  	
  Right
  of Set-off

  	
   

  	
  81

  
	
  Section 9.09.

  	
   

  	
  Governing
  Law; Jurisdiction; Consent to Service of Process

  	
   

  	
  82

  
	
  Section 9.10.

  	
   

  	
  WAIVER
  OF JURY TRIAL

  	
   

  	
  82

  
	
  Section 9.11.

  	
   

  	
  Appointment
  of Agent for Service of Process

  	
   

  	
  83

  
	
  Section 9.12.

  	
   

  	
  Waiver
  of Immunity

  	
   

  	
  84

  
	
  Section 9.13.

  	
   

  	
  Judgment
  Currency

  	
   

  	
  84

  
	
  Section 9.14.

  	
   

  	
  English
  Language

  	
   

  	
  84

  
	
  Section 9.15.

  	
   

  	
  Headings

  	
   

  	
  85

  

 

 iii
 

 

	
  Section 9.16.

  	
   

  	
  Confidentiality

  	
   

  	
  85

  
	
  Section 9.17.

  	
   

  	
  Release
  of Guarantees and Collateral

  	
   

  	
  86

  
	
  Section 9.18.

  	
   

  	
  Interest
  Rate Limitation

  	
   

  	
  87

  
	
  Section 9.19.

  	
   

  	
  USA
  Patriot Act

  	
   

  	
  87

  

 

	
  SCHEDULES:

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Pricing Schedule

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 2.01 – Commitments

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 3.05 – Existing Real Properties

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 3.06 – Existing Litigation

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 3.12 – List of Subsidiaries

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 3.16 – Acquisition Documentation

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 6.01 – Existing Indebtedness

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 6.02 – Existing Liens

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 6.04 – Existing Investments

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Schedule 6.10 – Existing Restrictions

  	
   

  	
   

  	
   

  	
   

  
											

 

	
  EXHIBITS:

  	
   

  	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Exhibit A

  	
   

  	
  –

  	
   

  	
  Form of Assignment

  
	 
	
  Exhibit B-1

  	
   

  	
  –

  	
   

  	
  Form of opinion of special New York and California
  counsel for the Borrower

  
	 
	
  Exhibit B-2

  	
   

  	
  –

  	
   

  	
  Form of opinion of special Bermuda counsel for the
  Borrower

  
	 
	
  Exhibit B-3

  	
   

  	
  –

  	
   

  	
  Form of opinion of special Singapore counsel for the
  Borrower

  
	 
	
  Exhibit C

  	
   

  	
  –

  	
   

  	
  Form of Guarantee Agreement

  
	 
	
  Exhibit D

  	
   

  	
  –

  	
   

  	
  Form of US Pledge Agreement

  
	 
	
  Exhibit E

  	
   

  	
  –

  	
   

  	
  Form of Singapore Share Charge

  
	 
	
  Exhibit F

  	
   

  	
  –

  	
   

  	
  Form of Bermuda Pledge Agreement

  
	 
	
  Exhibit G

  	
   

  	
  –

  	
   

  	
  Form of Security Agreement

  
	 
	
  Exhibit H

  	
   

  	
  –

  	
   

  	
  Form of Interest Election

  
											

 

 iv

 

 

CREDIT AGREEMENT
dated as of November 8, 2006 among MARVELL TECHNOLOGY GROUP LTD., the LENDERS
party hereto, CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent,
LASALLE BANK NATIONAL ASSOCIATION, as Syndication Agent and KEYBANK NATIONAL
ASSOCIATION and COMMERZBANK AG, as Co-Documentation Agents.

WHEREAS, the Borrower (such term and other capitalized
terms used in these recitals without definition having the meanings set forth
in Section 1.01) desires that the Lenders extend credit in the form of term
loans on the Closing Date in an aggregate principal amount of $400,000,000;

WHEREAS,
the proceeds of the Loans, together with not less than $206,000,000 of the
Borrower’s cash on hand, will be used to pay (i) amounts payable under the
Acquisition Documentation as consideration for the Acquisition and (ii) fees
and expenses payable in connection with the Transactions;

WHEREAS,
the Borrower is willing to secure (i) its obligations under this Agreement and
(ii) its obligations under certain hedging arrangements, by granting Liens on
certain of its assets to the Administrative Agent as provided in the Security
Documents;

WHEREAS,
each Guarantor is willing to guarantee the foregoing obligations of the
Borrower and to secure its guarantee thereof by granting Liens on certain of
its assets to the Administrative Agent as provided in the Security Documents;
and

WHEREAS,
the Lenders are not willing to make loans hereunder, and the counterparties to
the hedging arrangements referred to above are not willing to enter into or
maintain them, unless (i) the foregoing obligations of the Borrower are secured
and guaranteed as described above and (ii) each guarantee thereof is secured by
Liens on assets of the relevant Guarantor as provided in the Security
Documents;

NOW,
THEREFORE, the parties hereto agree as follows:

ARTICLE 1

Definitions

Section 1.01.  Defined Terms.  As used in this Agreement, the
following terms have the meanings specified below:

 

 

“ABR”, when used with respect to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Alternate Base
Rate.

“Acquired Business” means the communications and applications
processor business of the Seller.

“Acquisition” means the acquisition by the
Borrower on the Closing Date of the Acquired Business from the Seller in
accordance with the terms of the Asset Purchase Agreement and the other
Acquisition Documentation.

“Acquisition Documentation” means, collectively, the Asset
Purchase Agreement and all schedules, exhibits, annexes and amendments thereto
and all side letters and agreements (including all Ancillary Agreements
referred to in the Asset Purchase Agreement) affecting the terms thereof or
entered into in connection therewith.

“Adjusted LIBO Rate” means, with respect to
any Eurodollar Borrowing for any Interest Period, an interest rate per annum
equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Adjustment.

“Administrative Agent” means Credit Suisse,
Cayman Islands Branch, in its capacity as administrative agent and collateral
agent under the Loan Documents.

“Administrative Questionnaire” means an
Administrative Questionnaire in a form supplied by the Administrative Agent.

“Affiliate” means, with respect to a
specified Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control
with such specified Person.

“Agents” means the Administrative Agent, the Syndication
Agent and the Co-Documentation Agents, and “Agent”
means any of them as the context may require.

“Alternate Base Rate” means, for any day, a
rate per annum equal to the greater of (a) the Prime Rate in effect on such day
and (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of
1%.  Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds Effective Rate will
be effective from and including the effective date of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively.

“Amortization Date” means (a) prior to the Maturity Date, the
last Business Day of each March, June, September and December, commencing the
last Business Day of December 2006 and (b) the Maturity Date.

 2
 

 

 

“Applicable Base Rate Margin” has the meaning specified in
the Pricing Schedule.

“Applicable Eurodollar Margin” has the meaning specified in
the Pricing Schedule.

“Arranger” means Credit Suisse, in its capacity as sole lead
arranger and bookrunner of the Loans hereunder.

“Asset Disposition” means any sale, transfer
or other disposition (including pursuant to a sale and leaseback transaction)
of any property of the Borrower or any Subsidiary, except (a) dispositions
described in Sections 6.05(a)(i), 6.05(a)(ii) and Section 6.05(a)(iii) and in
the second proviso to Section 6.05(a) and (b) other dispositions resulting in
aggregate Net Proceeds not exceeding $20,000,000 during any Fiscal Year.

“Asset Purchase Agreement” means the asset purchase agreement
dated as of June 26, 2006 between the Borrower and the Seller.

“Assignment” means an assignment and
assumption agreement entered into by a Lender and an assignee (with the consent
of any party whose consent is required by Section 9.04), and accepted by the
Administrative Agent, in the form of Exhibit A or any other form approved by
the Administrative Agent.

“Bermuda Pledge Agreement” means the Bermuda Pledge Agreement
among certain of the Marvell Companies and the Administrative Agent,
substantially in the form of Exhibit F.

 “Borrower”
means Marvell Technology Group Ltd., a Bermuda exempted company.

“Borrowing” means Loans of the same Interest
Type made, converted or continued on the same day and, in the case of
Eurodollar Loans, as to which the same Interest Period is in effect.

“Borrowing Request” means a request by the
Borrower for a Borrowing in accordance with Section 2.03.

“Business Acquisition” means (a) an Investment by any Marvell
Company in a Person (including an Investment by way of acquisition of
securities) pursuant to which such Person becomes a Subsidiary or is merged
into or consolidated with any Marvell Company or (b) an acquisition by any
Marvell Company of the property and assets of any Person (other than any
then-existing Subsidiary) that constitutes substantially all of the assets of
such Person, or any division, line of business, or other business unit of such
Person.

 3
 

 

 

“Business Day” means any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar
Loan, the term “Business Day” shall also exclude any day on which banks are not
open for dealings in dollar deposits in the London interbank market.

“Capital Expenditures” means, for any
period, (a) the additions to property, plant and equipment and other capital
expenditures of the Borrower and its Subsidiaries that are (or would be) set
forth as such in a consolidated statement of cash flows of the Borrower and its
Subsidiaries for such period prepared in accordance with GAAP and (b) any
Capital Lease Obligations incurred by the Borrower and its Subsidiaries during
such period; provided that solely for purposes
of determining whether the Borrower is in Pro Forma Compliance with the Fixed
Charge Coverage Ratio in connection with the consummation of a Business
Acquisition as required by Section 6.04(g), “Capital
Expenditures” shall include (to the extent not already included) the
cash consideration paid by the Borrower and its Subsidiaries for such Business
Acquisition and any other Business Acquisition consummated during the relevant
calculation period.

“Capital Lease Obligations” of any Person
means obligations of such Person to pay rent or other amounts under any lease
of (or other arrangement conveying the right to use) real or personal property,
or a combination thereof, which obligations are required under GAAP to be
classified and accounted for as capital leases on a balance sheet of such
Person.  The amount of such obligations
will be the capitalized amount thereof determined in accordance with GAAP.

“Casualty Event” means any casualty
or other insured damage to any property of the Borrower or any Subsidiary, or
any taking of any such property under power of eminent domain or by
condemnation or similar proceeding, or any transfer of any such property in
lieu of a condemnation or similar taking thereof.

“Change in Control” means (a) the
acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (within the meaning of the Securities Exchange Act of 1934
and the rules of the SEC thereunder as in effect on the date hereof), other
than Sehat Sutardja, Weili Dai or Pantas Sutardja, of Equity Interests
representing more than 35% of the aggregate ordinary voting power represented
by the issued and outstanding Equity Interests of the Borrower; (b) occupation
of a majority of the seats (other than vacant seats) on the board of directors
of the Borrower by Persons who were neither (i) nominated by the board of
directors of the Borrower nor (ii) appointed by directors so nominated; or (c)
the occurrence of a change of control (or similar event however denominated)
under any indenture or other agreement in respect of any Permitted Subordinated
Debt or any other Material Debt.

 4
 

 

 

“Change in Law” means (a) the adoption of
any law, rule or regulation after the date of this Agreement, (b) any change in
any law, rule or regulation or in the interpretation or application thereof by
any Governmental Authority after such date or (c) compliance by any Lender (or,
for purposes of Section 2.14(b), by any lending office of such Lender or by
such Lender’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after such date.

“Closing Date” means the date on which each
of the conditions specified in Section 4.01 is satisfied (or waived in
accordance with Section 9.02).

“Collateral” means any and all “Collateral”,
as defined in any Security Document.

“Commitment” means, with respect to each
Lender, the commitment of such Lender to make a Loan on the Closing Date,
expressed as an amount representing the maximum principal amount of such Loan.
The amount of each Lender’s Commitment is set forth on Schedule 2.01. 
The aggregate amount of the Commitments is $400,000,000.

“Consolidated EBITDA” means, for any period,
Consolidated Net Income for such period plus (a) without duplication and to the
extent deducted in determining such Consolidated Net Income, the sum of (i)
consolidated interest expense for such period, (ii) consolidated income tax
expense for such period, (iii) all amounts attributable to depreciation and
amortization for such period, (iv) any extraordinary non-cash charges for such
period for severance, restructuring costs, goodwill impairment or other costs
related to the Acquisition or any Business Acquisition, subject to the
reasonable approval of the Administrative Agent, (v) fees and expenses incurred
during such period in connection with the Acquisition in an aggregate amount
not to exceed $8,000,000 and (vi) any non-cash expenses resulting from the
grant of stock options or other equity related incentives to any current or
former director, officer or employee of any Marvell Company incurred for such
period and minus (b) without duplication and to the extent included in
determining such Consolidated Net Income, the sum of (i) any extraordinary
gains for such period, (ii) all cash payments made during such period on
account of severance, restructuring charges and other non-cash charges added to
Consolidated Net Income pursuant to clause (a)(iv) above, (iii) any non-cash
gains for such period that represent the reversal of any accrual in a prior
period for, or the reversal of any cash reserves established in a prior period
for, anticipated cash charges, (iv) non-cash exchange, translation or
performance gains relating to any foreign currency hedging or commodities
hedging transactions (net of any non-cash losses relating to foreign exchange
or commodities hedging transactions), (v) any gain during such period from
discontinued operations of the Borrower and its Subsidiaries (net of all
non-cash losses from such discontinued operations) and (vi) any gain resulting
from the

 5
 

 

 

disposition of any asset of the Borrower and its
Subsidiaries not in the ordinary course of business, all determined on a
consolidated basis in accordance with GAAP; provided that
the effect of all financial statement expenses or adjustments for the Stated
Restatement Reasons for any period, to the extent such expenses or adjustments
are non-cash, shall be excluded from the computation of Consolidated EBITDA for
such period.

Notwithstanding the
foregoing, for each of the periods set forth below, Consolidated EBITDA shall
be deemed to be the amount set forth opposite such period:

	
  Fiscal Quarter Ended

  	
   

  	
  Consolidated EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  October 29, 2005

  	
   

  	
   

  	
  $

  	
  135,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  January 28, 2006

  	
   

  	
   

  	
  $

  	
  158,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 29, 2006

  	
   

  	
   

  	
  $

  	
  161,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  July 29, 2006

  	
   

  	
   

  	
  $

  	
  156,000,000

  	
   

  

 

“Consolidated Fixed
Charges” means, for any period, the sum of (a) Consolidated Interest
Expense for such period, (b) Capital Expenditures for such period, (c) to the
extent paid or payable in cash, income tax expense of the Borrower and its
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP, (d) the aggregate amount of scheduled principal payments made during
such period in respect of Long-Term Debt of the Borrower and its Subsidiaries
(except payments made by the Borrower or any Subsidiary to the Borrower or any
Subsidiary) and (e) the aggregate amount of principal payments (except
scheduled principal payments) made during such period in respect of Long-Term
Debt of the Borrower and its Subsidiaries (other than the Loans), in each case
to the extent that such payment reduced any scheduled principal payments that
would have become due within one year after the date of such payment.

Notwithstanding
the foregoing, if any determination of Consolidated Fixed Charges is required
by the terms hereof to be made for a period of four consecutive Fiscal Quarters
at a time when fewer than four full Fiscal Quarters have elapsed since the
Closing Date, such determination shall be made for the period elapsed from the
Closing Date through the most recent Fiscal Quarter then ended (annualized on a
simple arithmetic basis).

“Consolidated Interest Expense” means, for
any period, the sum of (a) the interest expense (including imputed interest
expense in respect of Capital Lease Obligations) of the Borrower and its
Subsidiaries for such period,

 6
 

 

 

determined on a consolidated basis in accordance with
GAAP and (b) any interest accrued during such period, in respect of Debt of the
Borrower or any Subsidiary, that is required under GAAP to be capitalized
rather than included in consolidated interest expense for such period.

“Consolidated Net Income” means, for any
period, the net income or loss of the Borrower and its Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a)
the income of any Person (except the Borrower) in which any other Person
(except the Borrower, a Subsidiary or a director holding qualifying shares in
compliance with applicable law) owns an Equity Interest, except to the extent
that dividends or other distributions were actually paid by such Person to the
Borrower or any Subsidiary during such period, and (b) the income or loss of
any Person accrued before (i) the date it becomes a Subsidiary, (ii) the date
it is merged into or consolidated with the Borrower or any Subsidiary or (iii)
the date its assets are acquired by the Borrower or any Subsidiary.

“Control” means possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.  “Controlling” and “Controlled” have meanings correlative
thereto.

“Credit Parties” means the Borrower and the
Guarantors.

“Debt” of any Person means, without
duplication, (a) all obligations of such Person for borrowed money or with
respect to deposits or advances of any kind, (b) all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person on which interest charges are customarily paid, (d)
all obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (e) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of
business), (f) all Debt of others secured by (or for which the holder of such Debt
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Debt secured
thereby has been assumed, (g) all Guarantees by such Person of Debt of others,
(h) all Capital Lease Obligations of such Person, (i) all obligations,
contingent or otherwise, of such Person as an account party in respect of
letters of credit and letters of guaranty and (j) all obligations, contingent
or otherwise, of such Person in respect of bankers’ acceptances.  The Debt of any Person shall include the Debt
of any other entity (including any partnership in which such Person is a
general partner) to the extent that such Person is liable therefor as a result
of such Person’s ownership interest in or other relationship with such entity,
except to the extent that contractual provisions binding on the holder of such
Debt provide that such Person is not liable therefor.

 7
 

 

 

“Debt Incurrence” means the incurrence by any Marvell Company
of any Debt, other than Debt described in Section 6.01(a)(i) through Section
6.01(a)(vi), inclusive, Section 6.01(a)(viii) or Section 6.01(a)(ix).

“Default” means any event or condition which
constitutes an Event of Default or which upon notice, lapse of time or both
would, unless cured or waived, become an Event of Default.

“Disqualified Equity Interests” means Equity
Interests that (a) by their terms or upon the happening of any event are (i)
required to be redeemed or are redeemable at the option of the holder on or
prior to the first anniversary of the Maturity Date for consideration other
than Qualified Equity Interests or (ii) convertible at the option of the holder
into Disqualified Equity Interests or exchangeable for Debt or (b) require (or
permit at the option of the holder) the payment of any dividend, interest,
sinking fund or other similar payment (other than the accrual of such
obligations) on or prior to the first anniversary of the Maturity Date (other
than payments made solely in Qualified Equity Interests).

“dollars” or “$” refers to lawful money of the United States.

“Domestic Subsidiary” means any Subsidiary incorporated or
organized under the laws of the United States, any State thereof or the
District of Columbia.

 “Environmental
Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way
to the environment, the preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or health
and safety matters.

“Environmental Liability” means any
liability, contingent or otherwise (including any liability for damages, costs
of remediation, fines, penalties or indemnities), of any Credit Party directly
or indirectly resulting from or based on (a) violation of any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Material, (c) exposure to any Hazardous Material, (d)
the release or threatened release of any Hazardous Material into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

“Equity Interests” means (a) shares of
capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership
interests in a Person or (b) any warrants, options or other rights to acquire
such shares or interests.

 8
 

 

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time.

“ERISA Affiliate” means any trade or
business (whether or not incorporated) that, together with the Borrower or any
Subsidiary, is treated as a single employer under Section 414(b) or (c) of the
Internal Revenue Code or, solely for purposes of Section 302 of ERISA and
Section 412 of the Internal Revenue Code, is treated as a single employer under
Section 414 of the Internal Revenue Code.

“ERISA Event” means (a) any “reportable
event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (except an event for which the 30-day notice
period is waived); (b) the existence with respect to any Plan of an “accumulated
funding deficiency” (as defined in Section 412 of the Internal Revenue Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant to
Section 412(d) of the Internal Revenue Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by the Borrower or any ERISA Affiliate of any liability under Title
IV of ERISA with respect to the termination of any Plan; (e) the receipt by the
Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Plan or Plans or to appoint a
trustee to administer any Plan; (f) the incurrence by the Borrower or any ERISA
Affiliate of any liability with respect to withdrawal or partial withdrawal
from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any
ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from
the Borrower or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV
of ERISA.

“Eurodollar”, when used with respect to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate.

“Events of Default” has the meaning
specified in Article 7.

“Excess Cash Flow” means, for any Fiscal Year,
the sum (without duplication) of:

(a)           the Consolidated Net
Income of the Borrower and its Subsidiaries for such Fiscal Year, adjusted to
exclude any gains or losses attributable to any event as a result of which a
prepayment of the Loans is required pursuant to Section 2.09(b), 2.09(c) or
2.09(d); plus

 9

 

 

(b)           depreciation,
amortization and other non-cash charges or losses deducted in determining such
Consolidated Net Income for such Fiscal Year; plus

(c)           the amount, if any,
by which Net Working Capital decreased during such Fiscal Year; minus

(d)           the sum of (i) any
non-cash gains included in determining such Consolidated Net Income for such
Fiscal Year and (ii) the amount, if any, by which Net Working Capital increased
during such Fiscal Year; minus

(e)           Capital Expenditures
for such Fiscal Year (except to the extent attributable to the incurrence of
Capital Lease Obligations or otherwise financed by incurring Long-Term Debt or
by the Net Proceeds of any issuance by the Borrower of Qualified Equity
Interests); minus

(f)            cash consideration
paid during such Fiscal Year to make acquisitions permitted hereunder (except
to the extent financed by incurring Long-Term Debt or by the Net Proceeds of
any issuance by the Borrower of Qualified Equity Interests); minus

(g)           the aggregate amount
of Restricted Payments made in cash by the Borrower during such Fiscal Year
pursuant to Section 6.08(a)(iii); minus

(h)           the aggregate
principal amount of Long-Term Debt repaid by the Borrower and its Subsidiaries
during such Fiscal Year, excluding (i) mandatory prepayments of Loans pursuant
to Section 2.09(b), 2.09(c), 2.09(d) or 2.09(e), (ii) repayments of revolving
borrowings except to the extent the commitments with respect thereto are
correspondingly reduced and (iii) repayments of Long-Term Debt financed by
incurring other Long-Term Debt or by the Net Proceeds of any issuance by the
Borrower of Qualified Equity Interests.

“Excluded Taxes” means, with respect to any
Lender Party or other recipient of a payment made by or on account of any
obligation of the Borrower hereunder:

(a)           income or franchise
taxes imposed on (or measured by) its net income by the United States, or by
the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located;

 10
 

 

 

(b)           any branch profits
taxes imposed by the United States or any similar tax imposed by any other
jurisdiction described in clause (a) above; and

(c)           in the case of a
Foreign Lender, any withholding tax that (i) is in effect and would apply to
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to this Agreement or designates a new lending office or (ii) is
attributable to such Foreign Lender’s failure to comply with Section 2.16(e).

Notwithstanding the foregoing, a withholding tax will
not be an “Excluded Tax” to the extent that (A) it is imposed on amounts
payable to a Foreign Lender by reason of an assignment made to such Foreign
Lender at the Borrower’s request pursuant to Section 2.18(b), (B) it is imposed
on amounts payable to a Foreign Lender by reason of any other assignment and
does not exceed the amount for which the assignor would have been indemnified
pursuant to Section 2.16(a) or (C) in the case of designation of a new lending
office, it does not exceed the amount for which such Foreign Lender would have
been indemnified if it had not designated a new lending office.

“Federal Funds Effective Rate” means, for
any day, the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published on such Business
Day, the average of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized
standing selected by it.

“Federal Reserve Board” means the Board of
Governors of the Federal Reserve System of the United States.

“Fee Letter” means the Fee Letter dated as of October 18,
2006 among the Borrower, Credit Suisse Securities (USA) LLC and Credit Suisse,
Cayman Islands Branch.

“Financial Officer” means the chief
financial officer, principal accounting officer, treasurer or controller of the
Borrower.

“Financing Transactions” means the
execution, delivery and performance by each Credit Party of the Loan Documents
to which it is to be a party, the granting of the Liens provided for in the
Security Documents, the borrowing of Loans and the use of the proceeds thereof.

“Fiscal Quarter” means a fiscal quarter of
the Borrower.

 11
 

 

 

“Fiscal Year” means a fiscal year of the
Borrower. A Fiscal Year is identified by the calendar year in which the last
day of such Fiscal Year occurs (e.g., Fiscal Year 2003 refers to the Fiscal
Year that ended on the Saturday closest to January 31, 2003).

“Foreign Lender” means any Lender that is
organized under the laws of a jurisdiction outside the United States.

“GAAP” means generally accepted accounting
principles as in effect from time to time in the United States, applied on a
basis consistent (except for changes concurred in by the Borrower’s independent
public accountants) with the most recent audited consolidated financial
statements of the Borrower and its consolidated Subsidiaries delivered to the
Lenders.

“Governmental Authority” means the
government of the United States, any other nation or any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

“Guarantee” by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Debt or other obligation of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Debt or other obligation or to purchase (or
advance or supply funds for the purchase of) any security for the payment
thereof, (b) to purchase or lease property, securities or services for the
purpose of assuring the owner of such Debt or other obligation of the payment
thereof, (c) to maintain working capital, equity capital or any other financial
statement condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Debt or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Debt or other obligation; provided
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business.

“Guarantors” means each Subsidiary listed on
the signature pages of the Guarantee Agreement and each Subsidiary that shall,
at any time after the date hereof, become a Guarantor pursuant to Section 5 of
the Guarantee Agreement.

“Guarantee Agreement” means the Guarantee
Agreement among the Credit Parties and the Administrative Agent, substantially
in the form of Exhibit C.

 12
 

 

 

“Hazardous Materials” means all explosive or
radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or
asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

“Hedging Agreement” shall mean any agreement with respect to
any swap, forward, future, cap, collar, floor or derivative transaction or
option or similar agreement involving, or settled by reference to, one or more
rates, currencies, fuel or other commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any
combination of these transactions; provided, however, that no phantom stock or similar plan providing for
payments and on account of services provided by current or former directors,
officers, employees or consultants of the Borrower or any Subsidiary shall be a
Hedging Agreement.

“Indemnified Taxes” means all Taxes except
Excluded Taxes.

“Information Memorandum” means the
Confidential Information Memorandum dated October 2006 relating to the Borrower
and the Transactions.

“Interest Election” means an election by the
Borrower to change or continue the Interest Type of a Borrowing in accordance
with Section 2.05, in the form of Exhibit H or any other form approved by the
Administrative Agent.

“Interest Payment Date” means (a) with respect
to any ABR Loan, the last Business Day of each March, June, September and
December and (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a part and,
if such Interest Period is longer than three months, each day during such
Interest Period that occurs at intervals of three months’ duration after the
first day of such Interest Period.

“Interest Period” means, with respect to any
Eurodollar Borrowing, the period beginning on the date of such Borrowing and
ending on the numerically corresponding day in the calendar month that is one,
two, three or six months thereafter, as the Borrower may elect; provided that (a) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (b) any Interest Period
that commences on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the last calendar month of
such Interest Period) shall end on the last Business Day of the last calendar
month of such Interest Period.  For
purposes hereof, the date of a Borrowing initially

 13
 

 

 

shall be the date on which such Borrowing is made and
thereafter shall be deemed to be the effective date of the most recent
conversion or continuation of such Borrowing.

“Interest Type”, when used with respect to
any Loan or Borrowing, refers to whether the rate of interest on such Loan, or
on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

“Internal Revenue Code” means the Internal
Revenue Code of 1986, as amended from time to time.

“Investment” means any investment in any
Person, whether by means of purchase of equity interests, capital contribution
(in cash, property or services), loan, Guarantee, time deposit or otherwise.

“Lender Affiliate” means, (a) with respect
to any Lender, (i) an Affiliate of such Lender or (ii) any entity (whether a
corporation, partnership, trust or otherwise) that is engaged in making,
purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in the ordinary course of its business and is administered or managed
by such Lender or an Affiliate of such Lender and (b) with respect to any
Lender that is a fund which invests in bank loans and similar extensions of
credit, any other fund that invests in bank loans and similar extensions of
credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

“Lender Parties” means the Lenders and the
Agents.

“Lenders” means the Persons listed on
Schedule 2.01 and any other
Person that shall have become a party hereto pursuant to an Assignment, other
than any such Person that ceases to be a party hereto pursuant to an
Assignment.

“Leverage Ratio” means, on any day, the ratio of (a) Total
Debt as of such day to (b) Consolidated EBITDA for the period of four
consecutive Fiscal Quarters ended on such day (or, if such day is not the last
day of a Fiscal Quarter, ended on the last day of the Fiscal Quarter most
recently ended before such day).

“LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, the rate per annum determined by
the Administrative Agent at approximately 11:00 a.m. (London time) on the date
that is two Business Days prior to the beginning of the relevant Interest
Period by reference to the British Bankers’ Association Interest Settlement
Rates for deposits in Dollars (as set forth by the Bloomberg Information
Service or any successor thereto or any other service selected by the Administrative
Agent which has been nominated by the British Bankers’ Association as an
authorized information vendor for the purpose

 14
 

 

 

of displaying such rates) for a period equal to such
Interest Period; provided that, to the extent that
an interest rate is not ascertainable pursuant to the foregoing provisions of
this definition, the “LIBO Rate” shall be the interest rate per annum
determined by the Administrative Agent to be the average of the rates per annum
at which deposits in Dollars are offered for such relevant Interest Period to
major banks in the London interbank market in London, England by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date that
is two Business Days prior to the beginning of such Interest Period. Notwithstanding
the foregoing, if all the Lenders have consented to making a Eurodollar
Borrowing on the Closing Date, then “LIBO Rate” for such Eurodollar Borrowing
shall be the higher of (x) the rate per annum as would have been determined by
the preceding sentence of this definition two Business Days prior to the
Closing Date and (y) the rate per annum as determined by the preceding sentence
of this definition on the Closing Date, in each case for an Interest Period of
one month.

“Lien” means, with respect to any asset, (a)
any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge
or security interest in, on or of such asset, (b) the interest of a vendor or a
lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect
as any of the foregoing) relating to such asset and (c) in the case of
securities, any purchase option, call or similar right of a third party with
respect to such securities.

“Loan Documents” means this Agreement, the
Guarantee Agreement and the Security Documents.

“Loans” means loans made by the Lenders to
the Borrower pursuant to this Agreement.

“Long-Term Debt” means any Debt that, in
accordance with GAAP, constitutes (or, when incurred, constituted) a long-term
liability.

“Marvell  Companies”
means the Borrower and the Subsidiaries.

“Material Adverse Effect” means a material
adverse effect on (a) the business, assets, operations or condition, financial
or otherwise, of the Marvell Companies taken as a whole, (b) the ability of any
Credit Party to perform any of its obligations under any Loan Document or (c)
the rights of or benefits available to any Lender Party under any Loan
Document.

“Material Debt” means Debt (other than
obligations in respect of the Loans), or obligations in respect of one or more
Hedging Agreements, of any one or more Marvell Companies in an aggregate
principal amount exceeding $25,000,000. 
For purposes of determining Material Debt, the “principal amount” of the
obligations of any Marvell Company in respect of any Hedging Agreement

 15
 

 

 

at any time will be the maximum aggregate amount
(after giving effect to any netting agreements) that such Marvell Company would
be required to pay if such Hedging Agreement were terminated at such time.

“Material Disposition” means any sale, transfer or other
disposition (including pursuant to a sale and leaseback transaction), in a
transaction or series of related transactions, of any property of the Borrower
or any Subsidiary if the portion of Consolidated EBITDA attributable to such
property for the period of four consecutive Fiscal Quarters most recently ended
at or prior to the date of the consummation of such disposition for which
financial statements have been delivered to the Administrative Agent exceeds 2%
of the Consolidated EBITDA of the Borrower and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP.

“Maturity Date” means the third anniversary of the Closing
Date or, if such date is not a Business Day, the immediately preceding Business
Day.

“Minimum Guarantee Condition” means at any time the
satisfaction of the following: (a) the sum of the total assets of the Credit
Parties (excluding any assets of any Subsidiary of any Credit Party that is not
itself a Credit Party) is not less than 90% of the total assets of the Borrower
and its Subsidiaries determined on a consolidated basis in accordance with GAAP
as at the end of the most recently completed Fiscal Quarter for which financial
statements have been delivered to the Administrative Agent and (b) the total
revenues of the Credit Parties (excluding any revenues of any Subsidiary of any
Credit Party that is not itself a Credit Party) for the period of four
consecutive Fiscal Quarters most recently ended at or prior to such time for
which financial statements have been delivered to the Administrative Agent is
not less than 95% of the total revenues of the Borrower and its Subsidiaries
for such period determined on a consolidated basis in accordance with GAAP.

“Minimum Stock Collateral Condition” means at any time the
satisfaction of the following: (a) the sum of the total assets of the Marvell
Companies all (or, in the case of MSI, at least 83%) of whose Equity Interests
are then subject to a perfected first-priority pledge pursuant to a Pledge
Agreement (each a “Pledged Marvell Company”)
(excluding any assets of any Subsidiary of any Pledged Marvell Company that is
not itself a Pledged Marvell Company) is not less than 90% of the total assets
of the Borrower and its Subsidiaries determined on a consolidated basis in
accordance with GAAP as at the end of the most recently completed Fiscal
Quarter for which financial statements have been delivered to the
Administrative Agent and (b) the total revenues of the Pledged Marvell
Companies (excluding any revenues of any Subsidiary of any Pledged Marvell
Company that is not itself a Pledged Marvell Company) for the period of four
consecutive Fiscal Quarters most recently ended at or prior to such time for
which financial statements have been delivered to the Administrative Agent is
not

 16
 

 

 

less than 95% of the total revenues of the Borrower
and its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP; provided that,
so long as at least 83% of the issued and outstanding Equity Interests of MSI
are subject to a perfected first-priority pledge pursuant to the US Pledge
Agreement, the percentage of the assets and revenues of MSI that shall count
towards satisfaction of the Minimum Stock Collateral Condition shall equal the
percentage that such pledged Equity Interests represent of all of the issued
and outstanding Equity Interests of MSI.

“Moody’s” means Moody’s Investors Service,
Inc.

“Mortgage” means a mortgage, deed of trust, assignment of leases and rents,
leasehold mortgage or other security document granting a Lien on any Mortgaged
Property to secure the Secured Obligations. 
Each Mortgage must be satisfactory in form and substance to the
Administrative Agent.

“Mortgaged Property” means each parcel of
real property and improvements thereto owned by a Domestic Subsidiary that is
either (i) identified on Schedule 3.05 or (ii) subject to a Transaction Lien
granted after the Closing Date pursuant to Section 5.12 or 5.13.

“MSI” means Marvell Semiconductor, Inc., a California
corporation.

“Multiemployer Plan” means a multiemployer
plan as defined in Section 4001(a)(3) of ERISA.

“Net Proceeds” means, with respect to any
event, (a) the cash proceeds received in respect of such event including (i)
any cash received in respect of any non-cash proceeds, but only as and when
received, (ii) in the case of a casualty, insurance proceeds, and (iii) in the
case of a condemnation or similar event, condemnation awards and similar
payments, in each case net of (b) the sum of (i) all reasonable fees and
out-of-pocket expenses paid by the Marvell Companies to third parties (other
than Affiliates) in connection with such event, (ii) in the case of a sale,
transfer or other disposition of an asset (including pursuant to a sale and
leaseback transaction, a casualty or a condemnation or similar proceeding), the
amount of all payments required to be made by the Marvell Companies as a result
of such event to repay Debt (other than Loans) secured by such asset or
otherwise subject to mandatory prepayment as a result of such event, and (iii)
the amount of all taxes paid (or reasonably estimated to be payable) by the
Marvell Companies, and the amount of any reserves established by the Marvell
Companies to fund contingent liabilities reasonably estimated to be payable, in
each case during the year that such event occurred or the next succeeding year
and that are directly attributable to such event (as determined reasonably and
in good faith by the chief financial officer of the Borrower).

 17
 

 

 

“Net Working Capital” means, at any date,
(a) the consolidated current assets of the Borrower and its Subsidiaries as of
such date (excluding cash and Permitted Investments) minus (b) the consolidated
current liabilities of the Borrower and its Subsidiaries as of such date
(excluding current liabilities in respect of Debt).  Net Working Capital at any date may be a
positive or negative number.  Net Working
Capital increases when it becomes more positive or less negative and decreases
when it becomes less positive or more negative.

“Obligations” means all obligations defined as “Obligations,”
“Guaranteed Obligations” or “Secured Obligations” in the Guarantee Agreement or
the Security Documents.

“Other Taxes” means any and all present or
future recording, stamp, documentary, excise, transfer, sales, property or
similar taxes, charges or levies arising from any payment made under any Loan
Document or from the execution, delivery or enforcement of, or otherwise with
respect to, any Loan Document.

“Participants” has the meaning specified in
Section 9.04(e).

“Patriot Act” has the meaning specified in Section 9.19.

“PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity performing
similar functions.

“Perfection Certificate” means a certificate
in the form of Exhibit B to the Security Agreement or any other form approved
by the Administrative Agent.

“Permitted Investments” means investments
in:

(a)           direct obligations
of, or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States (or by any agency thereof to the extent such
obligations are backed by the full faith and credit of the United States), in
each case maturing within one year from the date of acquisition thereof;

(b)           commercial paper
maturing within 270 days from the date of acquisition thereof and having, at
such date of acquisition, the highest credit rating obtainable from S&P or
from Moody’s;

(c)           certificates of
deposit, banker’s acceptances and time deposits maturing within 180 days from
the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic office of any
commercial bank organized under the laws of the United States or any State
thereof which has a combined capital and surplus and undivided profits of at
least $500,000,000;

 18
 

 

 

(d)           fully collateralized
repurchase agreements with a term of not more than 30 days for securities
described in clause (a) above and entered into with a financial institution
satisfying the criteria described in clause (c) above; and

(e)           other short term
investments by Marvell Companies organized outside the United States made in
accordance with prudent investment practices for cash management and in
investments of a type and with financial institutions analogous to the
foregoing.

“Permitted Liens” means:

(a)           Liens imposed by law
for taxes that are not yet due or are being contested in compliance with
Section 5.05;

(b)           carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue by more than 30 days or are being contested in
compliance with Section 5.05;

(c)           pledges and deposits
made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations;

(d)           deposits to secure
the performance of bids, trade contracts, leases, statutory obligations, surety
and appeal bonds, performance bonds and other obligations of a like nature, in
each case in the ordinary course of business;

(e)           judgment liens in
respect of judgments that do not constitute an Event of Default under clause
(k) of Article 7;

(f)            easements, zoning
restrictions, rights-of-way and similar encumbrances on real property imposed
by law or arising in the ordinary course of business that do not secure any
monetary obligation;

(g)           any interest or
title of a lessor under any lease or sublease entered into in the ordinary
course of business and not interfering in any material respect with the
ordinary conduct of business of the Borrower or any Subsidiary;

(h)           Liens in favor of
customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods;

(i)            customary set-off
rights in favor of depositary banks;

 19
 

 

 

(j)            ordinary course
Liens of a collection bank arising under Section 4-208 of the Uniform Commercial
Code on items in the course of collection; and

(k)           Liens arising out of
conditional sale, title retention, consignment or similar arrangements for the
sale of goods entered into in the ordinary course of business in accordance
with past practices;

provided that the
term “Permitted Liens” shall not include any
Lien that secures Debt.

“Permitted  Subordinated Debt”
means unsecured subordinated Debt of the Borrower that (a) is not guaranteed by
any Subsidiary other than a Guarantor (on an unsecured subordinated basis, as
provided below) and which guarantee provides for the release and termination
thereof, without action by any party, upon any release and termination of such
Subsidiary’s Transaction Guarantee, (b) does not mature or amortize or require
any payment of principal, and is not subject to any sinking fund requirement,
prior to the first anniversary of the Maturity Date, (c) is not convertible
into or exchangeable into any Debt or Equity Interest other than Qualified
Equity Interests, (d) is subordinated to the Obligations on terms customary in
the subordinated high yield debt market at the time of incurrence, (e) the
covenants, prepayment and repurchase provisions and events of default of which
are no more burdensome or restrictive to the Credit Parties than those that are
customary in the subordinated high yield debt market at the time of incurrence
and (f) has other terms and conditions that, taken as a whole, are not more
burdensome or restrictive to the Credit Parties that those set forth in this
Agreement.

“Person” means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity.

“Plan” means any employee pension benefit
plan (except a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Internal Revenue Code or Section 302 of ERISA, and
in respect of which the Borrower or any ERISA Affiliate is (or, if such plan
were terminated, would under Section 4069 of ERISA be deemed to be) a “contributing
sponsor” as defined in Section 4001(a)(13) of ERISA.

“Pledge Agreement” means the US Pledge Agreement, the Bermuda
Pledge Agreement, the Singapore Share Charge and any other pledge agreement,
charge agreement, instrument or document executed and delivered pursuant to
Section 5.12 or Section 5.13 pursuant to which the Equity Interests of any
Marvell Company are pledged to secure any of the Secured Obligations.

 20
 

 

 

“Pricing Schedule” means the Pricing Schedule attached
hereto.

“Prime Rate” means the rate of interest per
annum announced from time to time by Credit Suisse as its prime rate in effect
at its principal office in New York City, New York.  Each change in the Prime Rate will be
effective for purposes hereof from and including the date such change is
announced as being effective.

“Pro Forma Basis” means, with respect to compliance with any
test or covenant hereunder and in connection with any event or transaction
requiring a calculation on a Pro Forma Basis for any period, compliance with
such test or covenant after giving effect to such event or transaction, and (i)
in the case of any Business Acquisition (other than the Acquisition) or
Material Disposition, including pro forma adjustments consistent with Article
11 of Regulation S-X of the Securities Act and any other adjustments reasonably
acceptable to the Administrative Agent and which are certified by a Financial
Officer as being reasonable and made in good faith, and using for purposes of
determining such compliance (x) in the case of any Business Acquisition, the
historical financial statements of all entities or assets so acquired or to be
acquired and (y) the consolidated financial statements of the Borrower and its
Subsidiaries which shall be reformulated as if such Business Acquisition or
Material Disposition, and any other Business Acquisitions or Material
Dispositions that have been consummated during such period, had been
consummated on the first day of such period, (ii) in the case of any incurrence
of Debt, assuming such Debt was incurred on the first day of such period and
assuming that such Debt bears interest during the portion of such period prior
to the date of incurrence at, in the case of Debt bearing interest at a
floating rate, the weighted average of the interest rates applicable to
outstanding Loans during such period and, in the case of Debt bearing interest
at a fixed rate, such fixed rate and (iii) in the case of any prepayment of
Debt, assuming that such prepayment had occurred on the first day of such
period. To the extent applicable, such pro forma calculations may be based on
financial statements of the Marvell Companies prepared with respect to any
period ending on or prior to the Closing Date, notwithstanding that such
historical financial statements may be restated for the Stated Restatement
Reasons.

“Pro Forma Compliance” means, at any date of determination,
that the Borrower shall be in pro forma compliance with the financial covenants
set forth in Section 6.13 and Section 6.14 as of the last day of the most
recent Fiscal Quarter end (computed on the basis of (a) balance sheet amounts
as of the most recently completed Fiscal Quarter and (b) income statement
amounts for the most recently completed period of four consecutive Fiscal
Quarters, in each case for which financial statements have been delivered to
the Administrative Agent and calculated on a Pro Forma Basis in respect of the
event giving rise to such determination).

 21
 

 

 

“Qualified Equity Interests” means all Equity Interests of a
Person other than Disqualified Equity Interests.

“Register”
has the meaning specified in Section 9.04(c).

“Related Parties” means, with respect to any
specified Person, such Person’s Affiliates and the respective directors,
officers, employees, agents, advisors, controlling persons and members of such
Person and its Affiliates.

“Required Lenders” means, at any time,
Lenders having outstanding Loans representing at least 51% of the sum of all
outstanding Loans at such time.

“Restricted Payment” means any dividend or
other distribution (whether in cash, securities or other property) with respect
to any Equity Interest in any Marvell Company, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation
or termination of any Equity Interest in any Marvell Company.

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

“SEC” means the Securities and Exchange
Commission.

“Secured Obligations” has the meaning
specified in the Security Documents.

“Secured Parties” has the meaning specified
in the Security Documents.

“Security Agreement” means the Security
Agreement among the Domestic Subsidiaries and the Administrative Agent,
substantially in the form of Exhibit G.

“Security Documents” means the Pledge
Agreements, the Security Agreement, the Mortgages and each other security
agreement, instrument or document executed and delivered pursuant to Section
5.12 or Section 5.13 to secure any of the Secured Obligations.

“Seller” means Intel Corporation, a Delaware corporation.

“Singapore Share Charge” means the Share Charge among certain
of the Marvell Companies and the Administrative Agent, substantially in the
form of Exhibit E.

“Stated Restatement Reasons” means any restatement of the
financial statements of the Marvell Companies prepared with respect to any
period ending

 22
 

 

 

on or prior to the Closing Date primarily to record
additional non-cash charges for stock-based compensation expense related to
certain stock option grants by the Borrower made prior to the Closing Date and
associated tax liability.

“Statutory Reserve Adjustment” means a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Federal Reserve Board to
which the Administrative Agent is subject with respect to eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the
Federal Reserve Board).  Such reserve
percentages will include those imposed pursuant to such Regulation D.  Eurodollar Loans will be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under such Regulation D or any comparable
regulation.  The Statutory Reserve
Adjustment will be adjusted automatically on and as of the effective date of
any change in any applicable reserve percentage.

“subsidiary” means, with respect to any
Person (the “parent”) at any date,
(a) any corporation, limited liability company, partnership or other entity the
accounts of which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in
accordance with GAAP as of such date and (b) any other corporation, limited
liability company, partnership or other entity (i) of which securities or other
ownership interests representing more than 50% of the equity or more than 50%
of the ordinary voting power or, in the case of a partnership, more than 50% of
the general partnership interests are, as of such date, owned, controlled or
held, or (ii) that is otherwise Controlled as of such date, by the parent
and/or one or more of its subsidiaries.

“Subsidiary” means any subsidiary of the
Borrower.  For purposes of the
representations and warranties made herein on the Closing Date, the term “Subsidiary” includes any subsidiary acquired by the Borrower
pursuant to the Acquisition.

“Taxes” means any and all present or future
taxes, levies, imposts, duties, deductions, charges or withholdings imposed by
any Governmental Authority.

“Total Capitalization” means, as of any
date, the sum of (a) Total Debt as of such date and (b) total shareholders’
equity of the Borrower as of such date.

“Total Debt” means, as of any date, the
aggregate principal amount of Debt of the Borrower and its Subsidiaries
outstanding as of such date, determined on a consolidated basis in accordance
with GAAP; provided that the term
“Total

 23
 

 

 

Debt” will not include contingent
obligations of the Borrower or any Subsidiary as an account party in respect of
any letter of credit or letter of guaranty unless such letter of credit or
letter of guaranty supports an obligation that constitutes Debt.

“Transaction Guarantee” means, with respect
to each Guarantor, its guarantee of the Obligations under the Guarantee
Agreement or a supplement thereto.

“Transaction Liens”
means the Liens on Collateral granted by the Credit Parties under the Security
Documents.

“Transactions” means the Acquisition and the
Financing Transactions.

“Trigger Date” means the earlier to occur of (a) the date
that is six months after the Closing Date and (b) the date on which the
Borrower shall have received a corporate family rating from Moody’s and a
corporate rating from S&P.

 “United
States” means the United States of America.

“US Pledge Agreement” means the Pledge Agreement among
certain of the Marvell Companies and the Administrative Agent, substantially in
the form of Exhibit D.

“Withdrawal Liability” means liability to a
Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title
IV of ERISA.

Section 1.02.  Classification of Loans and
Borrowings.  For purposes of
this Agreement, Loans may be classified and referred to by Interest Type (e.g., a “Eurodollar Loan”).  Borrowings also may be classified and
referred to by Interest Type (e.g., a “Eurodollar Borrowing”).

Section 1.03.  Terms Generally.  The definitions of terms herein
(including those incorporated by reference to another document) apply equally
to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
includes the corresponding masculine, feminine and neuter forms.  The words “include”,
“includes” and “including” shall be deemed to be followed
by the phrase “without limitation”.  The word “will”
shall be construed to have the same meaning and effect as the word “shall”. 
Unless the context requires otherwise, (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any restrictions
on such amendments, supplements

 24
 

 

 

or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, this Agreement and (e) the word “property” shall be construed to refer to any and all tangible
and intangible assets and properties, including cash, securities, accounts and
contract rights.

Section 1.04.  Accounting Terms; Changes in
GAAP.  Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP as in effect from time to time; provided that, if the Borrower notifies
the Administrative Agent that the Borrower requests an amendment of any
provision hereof to eliminate the effect of any change occurring after the date
hereof in GAAP or in the application thereof (or if the Administrative Agent
notifies the Borrower that the Required Lenders request an amendment of any
provision hereof for such purpose), regardless of whether such notice is given
before or after such change in GAAP or in the application thereof, then such
provision shall be applied on the basis of GAAP as in effect and applied
immediately before such change shall have become effective until such notice
shall have been withdrawn or such provision amended in accordance herewith.

Section 1.05.  Pro Forma Calculations. In
the event of any Business Acquisition (other than the Acquisition) or Material
Disposition by any Marvell Company, determinations of compliance with the
financial covenants and tests contained herein for any applicable calculation
period shall be made on a Pro Forma Basis.

ARTICLE
2

The Loans

Section 2.01.  Commitments.  (a) Subject to the terms and
conditions set forth herein and in reliance upon the representations and
warranties set forth herein, each Lender agrees to make a Loan to the Borrower
on the Closing Date in a principal amount not exceeding its Commitment. Amounts
repaid in respect of Loans may not be reborrowed.

(b)        The Commitments of the Lenders are
several, i.e., the failure of any Lender to make
any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder, and no Lender shall be responsible for any other Lender’s
failure to make Loans as and when required hereunder.

 25

 

 

Section 2.02.  Loans.  (a) Each Loan shall be made as
part of a Borrowing consisting of Loans of the same Interest Type made by the
Lenders ratably in accordance with their respective Commitments, as the
Borrower may request (subject to Section 2.12 and Section 2.13) in accordance
herewith; provided that all
Borrowings made on the Closing Date must be ABR Borrowings unless all Lenders
consent to Eurodollar Borrowings being made on the Closing Date and no
Borrowings may be converted into or continued as a Eurodollar Borrowing having
an Interest Period in excess of one month prior to the date that is 60 days
after the Closing Date.  Each Lender at
its option may make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan.  Any exercise of such option shall not affect
the Borrower’s obligation to repay such Loan as provided herein.

(b)           At the beginning of each Interest
Period for any Eurodollar Borrowing, the aggregate amount of such Borrowing
shall be an integral multiple of $1,000,000 and not less than $3,000,000.  When each ABR Borrowing is made, the
aggregate amount of such Borrowing shall be an integral multiple of $500,000
and not less than $1,000,000.  Borrowings
of more than one Interest Type may be outstanding at the same time; provided that there shall not at any time
be more than a total of five Eurodollar Borrowings outstanding.

(c)           Notwithstanding any other provision
hereof, the Borrower will not be entitled to request, or to elect to convert or
continue, any Eurodollar Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.

Section 2.03.  Requests to Borrow Loans.  To request a Borrowing, the
Borrower shall notify the Administrative Agent of such request by telephone (a)
in the case of a Eurodollar Borrowing, not later than 12:00 p.m., New York City
time, three Business Days (or, if all the Lenders so consent, one Business Day)
before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing,
not later than 12:00 p.m., New York City time, one Business Day before the date
of the proposed Borrowing.  Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or facsimile to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower.  Each such telephonic and
written Borrowing Request shall specify the following information in compliance
with Section 2.02:

(i)            the aggregate amount of such
Borrowing;

(ii)           the date of such Borrowing, which
shall be a Business Day;

(iii)          whether such Borrowing is to be an ABR
Borrowing or a Eurodollar Borrowing;

 26
 

 

 

(iv)          in the case of a Eurodollar Borrowing,
the initial Interest Period to be applicable thereto (which shall be a period
of one month); and

(v)           the location and number of the
account to which funds are to be disbursed.

If no election as to the Interest Type of a Borrowing
is specified, the  requested Borrowing
will be an ABR Borrowing.  Promptly after
it receives a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender as to the details of such
Borrowing Request and the amount of such Lender’s Loan to be made pursuant
thereto.

Section 2.04.  Funding of
Loans.  (a) Each Lender making
a Loan hereunder shall wire the principal amount thereof in immediately
available funds, by 12:00 noon, New York City time, on the proposed date of
such Loan, to the account of the Administrative Agent most recently designated
by it for such purpose by notice to the Lenders.  The Administrative Agent shall make such
funds available to the Borrower by promptly crediting the amounts so received,
in like funds, to the account designated by the Borrower in the applicable Borrowing
Request.

(b)           Unless the Administrative Agent
receives notice from a Lender before the proposed date of any Borrowing that
such Lender will not make its share of such Borrowing available to the
Administrative Agent, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with Section 2.04(a) and
may, in reliance on such assumption, make a corresponding amount available to
the Borrower.  In such event, if a Lender
has not in fact made its share of such Borrowing available to the
Administrative Agent, such Lender and the Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the day such amount is made
available to the Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, a rate determined by
the Administrative Agent to represent its cost of overnight or short-term funds
(which determination shall be conclusive absent manifest error) or (ii) in the
case of the Borrower, the interest rate applicable to the Loans comprising such
Borrowing.  If such Lender pays such
amount to the Administrative Agent, such amount shall constitute such Lender’s Loan
included in such Borrowing.

Section 2.05.  Interest
Elections.  (a) Each Borrowing initially shall
be of the Interest Type specified in the applicable Borrowing Request and, in
the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request or as provided in Section 2.03.  Thereafter, the Borrower may elect to convert
such Borrowing to a different Interest Type or, in the case of a Eurodollar
Borrowing, to continue such Borrowing for one or more additional

 27
 

 

 

Interest Periods, all as provided in this
Section.  The Borrower may elect
different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing.

(b)           To make an election pursuant to this
Section, the Borrower shall notify the Administrative Agent thereof by
telephone by the time that a Borrowing Request would be required under Section
2.03 if the Borrower were requesting that a Borrowing of the Interest Type
resulting from such election be made on the effective date of such
election.  Each such telephonic Interest
Election shall be irrevocable and shall be confirmed promptly by hand delivery
or facsimile to the Administrative Agent of a written Interest Election signed
by the Borrower.

(c)           Each telephonic and written Interest
Election shall specify the following information in compliance with Section
2.02 and subsection (e) of this Section:

(i)            the Borrowing to which such Interest
Election applies and, if different options are being elected with respect to
different portions thereof, the portions thereof to be allocated to each
resulting Borrowing (in which case the information to be specified pursuant to
clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

(ii)           the effective date of the election
made pursuant to such Interest Election, which shall be a Business Day;

(iii)           whether the resulting Borrowing is to
be an ABR Borrowing or a Eurodollar Borrowing; and

(iv)          if the resulting Borrowing is to be a
Eurodollar Borrowing, the Interest Period to be applicable thereto after giving
effect to such election, which shall be a period contemplated by the definition
of “Interest Period”.

If an Interest Election requests a Eurodollar
Borrowing but does not specify an Interest Period, the Borrower will be deemed
to have selected an Interest Period of one month’s duration.

(d)           Promptly after it receives an
Interest Election, the Administrative Agent shall advise each Lender as to the
details thereof and such Lender’s portion of each resulting Borrowing.

 28
 

 

 

(e)           If the Borrower fails to deliver a
timely Interest Election with respect to a Eurodollar Borrowing before the end
of an Interest Period applicable thereto, such Borrowing (unless repaid) will
be converted to an ABR Borrowing at the end of such Interest Period.  Notwithstanding any contrary provision
hereof, if an Event of Default has occurred and is continuing then, so long as
an Event of Default is continuing, (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) each Eurodollar
Borrowing (unless repaid) will be converted to an ABR Borrowing at the end of
the Interest Period applicable thereto.

Section 2.06.  Termination
of Commitments.  The
Commitments will terminate on the Closing Date immediately after the closing
hereunder. Notwithstanding the foregoing, the Commitments will terminate at
5:00 p.m., New York City time, on November 15, 2006, if the Closing Date shall
not have occurred by such time.

Section 2.07.  Payment at
Maturity; Evidence of Debt. 
(a) The Borrower unconditionally promises to pay to the Administrative
Agent on the Maturity Date, for the account of each Lender, the then unpaid
principal amount of such Lender’s Loans.

(b)           Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Loan made by
such Lender, including the amounts of principal and interest payable and paid
to such Lender from time to time.

(c)           The Administrative Agent shall
maintain accounts in which it shall record (i) the amount of each Loan made hereunder,
the Interest Type thereof and each Interest Period (if any) applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due
and payable from the Borrower to each Lender hereunder and (iii) the amount of
any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

(d)           The entries made in the accounts
maintained pursuant to subsections (b) and (c) of this Section shall be prima  facie
evidence of the existence and amounts of the obligations recorded therein; provided that any failure by any Lender or
the Administrative Agent to maintain such accounts or any error therein shall
not affect the Borrower’s obligation to repay the Loans in accordance with the
terms of this Agreement.

(e)           Any Lender may request that Loans
made by it be evidenced by a promissory note. 
In such event, the Borrower shall prepare, execute and deliver to such
Lender a promissory note payable to the order of such Lender (or, if requested
by such Lender, to such Lender and its registered assigns) and in a form
approved by the Administrative Agent. 
Thereafter, the Loans evidenced by such

 29
 

 

 

promissory note and interest thereon shall at all
times (including after assignment pursuant to Section 9.04) be represented by
one or more promissory notes in such form payable to the order of the payee
named therein (or, if such promissory note is a registered note, to such payee
and its registered assigns).

Section 2.08.  Scheduled
Amortization of Loans.  (a)
Subject to adjustment pursuant to Section 2.08(b), on each Amortization Date
prior to the Maturity Date, the Borrower shall repay, and there shall become
due and payable, an aggregate principal amount of Loans equal to 0.25% of the
aggregate principal amount of Loans made on the Closing Date.

(b)           Any prepayment of Loans pursuant to
Section 2.09 will be applied to reduce the subsequent scheduled payments of the
Loans to be made pursuant to this Section in inverse order of maturity.

(c)           Before repaying any Loans pursuant to
this Section, the Borrower shall select the Borrowing or Borrowings to be
repaid and shall notify the Administrative Agent by telephone (confirmed by
telecopy) of such selection not later than 11:00 a.m., New York City time,
three Business Days before the scheduled date of such repayment.  Each such repayment of a Borrowing shall be
applied ratably to the Loans included in such Borrowing and shall be
accompanied by accrued interest on the amount repaid.

Section 2.09.  Optional
and Mandatory Prepayments. 
(a) Optional Prepayments.  The Borrower will have the right at any time
to prepay any Borrowing in whole or in part, subject to the provisions of this
Section.

(b)           Asset
Dispositions.  Within seven
Business Days after any Net Proceeds are received by or on behalf of the
Borrower or any Subsidiary in respect of any Asset Disposition, the Borrower
shall prepay Borrowings in an aggregate amount equal to such Net Proceeds; provided that, if within one Business Day
of receipt of such Net Proceeds, the Borrower shall deliver to the
Administrative Agent a certificate of a Financial Officer to the effect that
(i) the Borrower and its Subsidiaries intend to apply the Net Proceeds from
such Asset Disposition (or a portion thereof specified in such certificate),
within 180 days after receipt of such Net Proceeds, to acquire assets that are
useful in the business of the Borrower and its Subsidiaries, (ii) the property
so acquired will be included in the Collateral at least to the extent that the
property disposed of was included therein and (iii) no Default has occurred and
is continuing, then no prepayment will be required pursuant to this subsection
in respect of such Net Proceeds (or the portion of such Net Proceeds specified
in such certificate, if applicable) except that, if any such Net Proceeds have
not been so applied by the end of such 180-day period, a prepayment will be
required at that time in an amount equal to the amount of such Net Proceeds
that have not been so applied.

 30
 

 

 

(c)           Casualty
Events.  Within seven Business
Days after any Net Proceeds are received by or on behalf of the Borrower or any
Subsidiary in respect of any Casualty Event, the Borrower shall prepay
Borrowings in an aggregate amount equal to such Net Proceeds; provided that, if within one Business Day
of receipt of such Net Proceeds, the Borrower shall deliver to the
Administrative Agent a certificate of a Financial Officer to the effect that
(i) the Borrower and its Subsidiaries intend to apply the Net Proceeds from
such event (or a portion thereof specified in such certificate), within 180
days after receipt of such Net Proceeds, to repair, restore or replace the
property with respect to which such Net Proceeds were received, (ii) if such
property is to be replaced, the property acquired to replace it will be
included in the Collateral at least to the extent that the property to be
replaced was included therein and (iii) no Default has occurred and is
continuing, then no prepayment will be required pursuant to this subsection in
respect of such Net Proceeds (or the portion of such Net Proceeds specified in
such certificate, if applicable) except that, if any such Net Proceeds have not
been so applied by the end of such 180-day period, a prepayment will be
required at that time in an amount equal to the amount of such Net Proceeds
that have not been so applied.

(d)           Debt
Incurrence.  Within seven
Business Days after any Net Proceeds are received by or on behalf of the
Borrower or any Subsidiary in respect of any Debt Incurrence, the Borrower
shall prepay Borrowings in an aggregate amount equal to such Net Proceeds; provided that, if such Debt Incurrence is
in respect of Permitted Subordinated Debt and within one Business Day of
receipt of such Net Proceeds the Borrower shall deliver to the Administrative
Agent a certificate of a Financial Officer to the effect that (i) the Borrower
and its Subsidiaries intend to apply the Net Proceeds from such Debt Incurrence
(or a portion thereof specified in such certificate), within 90 days after
receipt of such Net Proceeds, to pay the consideration for one or more Business
Acquisitions permitted hereunder and (ii) no Default has occurred and is
continuing, then no prepayment will be required pursuant to this subsection in
respect of such Net Proceeds (or the portion of such Net Proceeds specified in
such certificate, if applicable) except that, if any such Net Proceeds have not
been so applied by the end of such 90-day period, a prepayment will be required
at that time in an amount equal to the amount of such Net Proceeds that have
not been so applied. However, the Borrower will not be entitled to make
elections pursuant to the immediately preceding proviso with respect to Net
Proceeds aggregating more than $100,000,000 in any Fiscal Year.

(e)           Excess
Cash Flow.  The Borrower shall
prepay Borrowings in an aggregate amount equal to 25% of Excess Cash Flow for
each Fiscal Year commencing with the Fiscal Year ending on the Saturday closest
to January 31, 2008; provided that
no such prepayment shall be required if the Leverage Ratio at the end of such
Fiscal Year is less than 1.0 to 1.0. 
Each such prepayment shall be made on or before the date on which
financial statements are delivered pursuant

 31
 

 

 

to Section 5.01 with respect to the relevant Fiscal Year
(and in any event within 95 days after the end of such Fiscal Year).

(f)            Option
to Reject.  Notwithstanding
anything herein to the contrary, any Lender may elect, by notice to the
Administrative Agent by facsimile or by electronic communication at least three
Business Days prior to the applicable prepayment date, to decline (in whole but
not in part) any prepayment of its Loans pursuant to subsections (b), (c), (d)
and (e) of this Section, in which case the aggregate amount of the prepayment
that would have been applied to prepay the Loans of such declining Lender shall
be re-offered to those Lenders (if any) who have initially accepted such
prepayment (such re-offer to be made to each such Lender based on the
percentage which such Lender’s Loans represents of the aggregate Loans of all
Lenders who initially accepted such prepayment).  In the event of such a re-offer, the relevant
Lenders may elect, by notice to the Administrative Agent by facsimile or by
electronic communication within one Business Day of receiving notification of
such re-offer, to decline (in whole but not in part) the amount of such
prepayment that is re-offered to them. 
The aggregate amount of the prepayment that would have been applied to
prepay accepting Lenders but was so declined shall be retained by the Borrower.

(g)           Allocation
of Prepayments.  Any voluntary prepayment of the Borrowings
shall be applied first to ABR Loans to the full extent thereof before
application to Eurodollar Loans, in each case in a manner that minimizes the amount
of any payments required to be made by the Borrower pursuant to Section 2.15.
Any mandatory prepayments of the Borrowings shall be applied on a pro rata
basis to the then outstanding Loans being prepaid irrespective of whether such
outstanding Loans are ABR Loans or Eurodollar Loans; provided that if no Lender exercises its option to reject a
mandatory prepayment of the Loans pursuant to Section 2.09(f), then, with
respect to such mandatory prepayment, the amount of such mandatory prepayment
shall be applied first to Loans that are ABR Loans to the full extent thereof
before application to Loans that are Eurodollar Loans in a manner that
minimizes the amount of any payments required to be made by the Borrower
pursuant to Section 2.15.

(h)           Partial
Prepayments.  Each partial
prepayment of a Borrowing shall be in an amount that would be permitted under
Section 2.02(b) for a Borrowing of the same Interest Type, except as needed to
apply fully the required amount of a mandatory prepayment.  Each partial prepayment of a Borrowing shall
be applied ratably to the Loans included in such Borrowing.

(i)            Accrued
Interest.  Each prepayment of
a Borrowing shall be accompanied by accrued interest to the extent required by
Section 2.11.

(j)            Notice
of Prepayments.  The Borrower shall notify the
Administrative Agent by telephone (confirmed by facsimile) of any prepayment

 32
 

 

 

of any Borrowing pursuant to Section 2.09(a) hereunder (i) in the case of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business
Days before the date of prepayment and (ii) in the case of an ABR Borrowing,
not later than 11:00 a.m., New York City time, one Business Day before the date
of prepayment.  The Borrower shall notify the Administrative Agent by telephone
(confirmed by facsimile) of any prepayment of any Borrowing pursuant to subsections (b), (c), (d)
and (e) of this Section at least six Business Days before the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date, the principal amount of each Borrowing or portion thereof to
be prepaid and, in the case of a mandatory prepayment, a reasonably detailed
calculation of the amount of such prepayment.

Section 2.10.  Fees.  (a) The Borrower shall pay to the
Administrative Agent, for its own account, fees payable in the amounts and at
the times separately agreed upon by the Borrower and the Administrative Agent,
including pursuant to the Fee Letter.

(b)           All fees payable hereunder shall be
paid on the dates due, in immediately available funds, to the Administrative
Agent.  Fees paid shall not be refundable
under any circumstances.

Section 2.11.  Interest.  (a) The ABR Loans shall bear interest for
each day at the Alternate Base Rate plus the Applicable Base Rate Margin.

(b)           The Loans comprising each Eurodollar
Borrowing shall bear interest for each Interest Period in effect for such
Borrowing at the Adjusted LIBO Rate for such Interest Period plus the
Applicable Eurodollar Margin.

(c)           Notwithstanding the foregoing, if any
Default has occurred and is continuing, all amounts outstanding hereunder shall
bear interest, after as well as before judgment, at a rate per annum equal to
(i) in the case of principal of any Loan, 2% plus the rate otherwise applicable
to such Loan as provided in the preceding subsections of this Section or (ii)
in the case of any other amount, 2% plus the rate applicable to ABR Loans.

(d)           Interest accrued on each Loan shall
be payable in arrears on each Interest Payment Date for such Loan; provided that (i) interest accrued
pursuant to Section 2.11(c) shall be payable on demand, (ii) upon any repayment
of any Loan, interest accrued on the principal amount repaid shall be payable
on the date of such repayment and (iii) upon any conversion of a Eurodollar
Loan before the end of the current Interest Period therefor, interest accrued
on such Loan shall be payable on the effective date of such conversion.

(e)           All interest hereunder will be
computed on the basis of a year of 360 days, except that interest computed by
reference to the Alternate Base Rate at

 33
 

 

 

times when the Alternate Base Rate is based on the
Prime Rate will be computed on the basis of a year of 365 days (or 366 days in
a leap year), and in each case will be payable for the actual number of days
elapsed (including the first day but excluding the last day).  Each applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and its
determination thereof will be conclusive absent manifest error.

Section 2.12.  Alternate
Rate of Interest.  If before
the beginning of any Interest Period for a Eurodollar Borrowing:

(i)            the Administrative
Agent determines (which determination will be conclusive absent manifest error)
that adequate and reasonable means do not exist for ascertaining the Adjusted
LIBO Rate for such Interest Period; or

(ii)           the Required
Lenders advise the Administrative Agent that the Adjusted LIBO Rate for such
Interest Period will not adequately and fairly reflect the cost to such Lenders
of making or maintaining such Loans for such Interest Period;

then the Administrative Agent shall give notice
thereof to the Borrower and the Lenders by telephone or facsimile as promptly
as practicable thereafter and, until the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice no
longer exist, (i) any Interest Election that requests the conversion of any
Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing will
be ineffective and (ii) if any Borrowing Request requests a Eurodollar
Borrowing, such Borrowing will be made as an ABR Borrowing.

Section 2.13.  Illegality.  (a)  If any Change in Law shall make it unlawful
for any Lender to make or maintain any Eurodollar Loan or to give effect to its
obligations as contemplated hereby with respect to any Eurodollar Loan, then,
by written notice to the Borrower and to the Administrative Agent:

(i)            such Lender may declare that
Eurodollar Loans will not thereafter (for the duration of such unlawfulness) be
made by such Lender hereunder (or be continued for additional Interest Periods
and ABR Loans will not thereafter (for such duration) be converted into
Eurodollar Loans), whereupon any request for a Eurodollar Borrowing (or to
convert an ABR Borrowing to a Eurodollar Borrowing or to continue a Eurodollar
Borrowing for an additional Interest Period) shall, as to such Lender only, be
deemed a request for an ABR Loan (or a request to continue an ABR Loan as such
for an additional Interest Period or to convert a Eurodollar Loan into an ABR
Loan, as the case may be), unless such declaration shall be subsequently
withdrawn; and

 34
 

 

 

(ii)           such Lender may require that all
outstanding Eurodollar Loans made by it be converted to ABR Loans, in which
event all such Eurodollar Loans shall be automatically converted to ABR Loans
as of the effective date of such notice as provided in subsection (b) below.

If any Lender exercises its rights under (i) or (ii)
above, all payments and prepayments of principal that would otherwise have been
applied to repay the Eurodollar Loans that would have been made by such Lender
or the converted Eurodollar Loans of such Lender shall instead be applied to
repay the ABR Loans made by such Lender in lieu of, or resulting from the
conversion of, such Eurodollar Loans. 
Any such conversion of a Eurodollar Loan under (i) or (ii) above shall
be subject to Section 2.15.

(b)        For purposes of this Section 2.13, a
notice to the Borrower by any Lender shall be effective as to each Eurodollar
Loan made by such Lender, if lawful, on the last day of the Interest Period
then applicable to such Eurodollar Loan; in all other cases such notice shall
be effective on the date of receipt by the Borrower.

Section 2.14.  Increased
Costs.  (a) If any Change in
Law shall:

(i)            impose, modify or deem applicable
any reserve, special deposit or similar requirement against assets of, deposits
with or for the account of, or credit extended by, any Lender (except any such
reserve requirement reflected in the Adjusted LIBO Rate); or

(ii)           impose on any Lender or the London
interbank market any other condition affecting this Agreement or Eurodollar
Loans made by such Lender;

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
(or of maintaining its obligation to make Eurodollar Loans) or to reduce any
amount received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then the Borrower shall pay to such Lender such
additional amount or amounts as will compensate it for such additional cost
incurred or reduction suffered.

(b)        If any Lender determines that any Change
in Law regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender’s capital or on the capital of such Lender’s
holding company, if any, as a consequence of this Agreement or the Loans made
by such Lender to a level below that which such Lender or such Lender’s holding
company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy), then from time to time the Borrower
shall pay to such Lender such

 35
 

 

 

additional amount or amounts as will compensate it or
its holding company for any such reduction suffered.

(c)        A certificate of a Lender setting forth
the amount or amounts necessary to compensate it or its holding company, as the
case may be, as specified in subsection (a) or (b) of this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

(d)        Failure or delay by any Lender to demand
compensation pursuant to this Section will not constitute a waiver of its right
to demand such compensation; provided
that the Borrower will not be required to compensate a Lender pursuant to this
Section for any increased cost or reduction incurred more than 270 days before
it notifies the Borrower of the Change in Law giving rise to such increased
cost or reduction and of its intention to claim compensation therefor.  However, if the Change in Law giving rise to
such increased cost or reduction is retroactive, then the 270-day period
referred to above will be extended to include the period of retroactive effect
thereof.

Section 2.15.  Break
Funding Payments.  If (a) any
principal of any Eurodollar Loan is repaid on a day other than the last day of
an Interest Period applicable thereto (including as a result of an Event of
Default), (b) any Eurodollar Loan is converted on a day other than the last day
of an Interest Period applicable thereto, (c) the Borrower fails to borrow,
convert, continue or prepay any Loan on the date specified in any notice
delivered pursuant hereto, or (d) any Eurodollar Loan is assigned on a day
other than the last day of an Interest Period applicable thereto as a result of
a request by the Borrower pursuant to Section 2.18, then the Borrower shall
compensate each Lender for its loss, cost and expense attributable to such
event.  In the case of a Eurodollar Loan,
such loss, cost and expense to any Lender shall be deemed to include an amount
reasonably determined by such Lender to be the excess, if any, of (i) the
amount of interest that would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBO Rate that would have been
applicable to such Loan, for the period from the date of such event to the end
of the then current Interest Period therefor (or, in the case of a failure to
borrow, convert or continue, the Interest Period that would have begun on the
date of such failure), over (ii) the amount of interest that would accrue on
such principal amount for such period at the interest rate which such Lender
would bid were it to bid, at the beginning of such period, for dollar deposits
of a comparable amount and period from other banks in the eurodollar
market.  A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive
pursuant to this Section shall be delivered to the Borrower and shall be
conclusive absent manifest error.  The
Borrower shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof.

 36
 

 

 

Section 2.16.  Taxes.  (a) All payments by the Borrower under the
Loan Documents, wherever made, shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that, if the Borrower shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable will be increased as necessary so that, after all required deductions
(including deductions applicable to additional sums payable under this Section)
are made, each relevant Lender Party receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with applicable law.

(b)           In addition, the Borrower shall pay
any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

(c)           The Borrower shall indemnify each
Lender Party, within 10 days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes paid by such Lender Party with respect
to any payment by or obligation of the Borrower under the Loan Documents
(including Indemnified Taxes or Other Taxes imposed or asserted on or attributable
to amounts payable under this Section) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to the amount of any such
payment delivered to the Borrower by a Lender Party on its own behalf, or by
the Administrative Agent on behalf of a Lender Party, shall be conclusive
absent manifest error.

(d)           As soon as practicable after the
Borrower pays any Indemnified Taxes or Other Taxes to a Governmental Authority,
the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent.

(e)           Any Foreign Lender that is entitled
to an exemption from or reduction of withholding tax under the laws of the
United States, or any treaty to which the United States is a party, with
respect to payments under this Agreement shall deliver to the Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed
by applicable law or reasonably requested by the Borrower (including Internal
Revenue Service Form W-8) as will permit such payments to be made without
withholding or at a reduced rate, provided
that such Foreign Lender has received written notice from the Borrower advising
it of the availability of such exemption or reduction and supplying all
applicable documentation.  If any such
Foreign Lender becomes subject to any Tax because

 37
 

 

 

it fails to comply with this subsection as and when
prescribed by applicable law, the Borrower shall take such steps as such
Foreign Lender shall reasonably request to assist such Foreign Lender to
recover such Tax.

Section 2.17.  Payments
Generally; Pro Rata Treatment; Sharing of Set-offs.  (a) The Borrower shall make each payment
required to be made by it under the Loan Documents (whether of principal,
interest or fees or amounts payable under Section 2.14, 2.15 or 2.16 or
otherwise) before the time expressly required under the relevant Loan Document
for such payment (or, if no such time is expressly required, before 12:00 noon,
New York City time), on the date when due, in immediately available funds,
without set-off or counterclaim. 
Any amount received after such time on any day may, in the discretion of
the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the
Administrative Agent at its offices at Eleven Madison Avenue, New York, NY
10010, except as expressly provided herein and except that payments pursuant to
Sections 2.14, 2.15, 2.16 and 9.03 shall be made directly to the Persons
entitled thereto and payments pursuant to other Loan Documents shall be made to
the Persons specified therein.  The
Administrative Agent shall distribute any such payment received by it for the
account of any other Person to the appropriate recipient promptly after receipt
thereof.  If any payment under any Loan
Document shall be due on a day that is not a Business Day, the date for payment
will be extended to the next succeeding Business Day and, if such payment
accrues interest, interest thereon will be payable for the period of such
extension.  All payments under each Loan
Document shall be made in dollars.

(b)           If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts
of principal, interest and fees then due hereunder, such funds shall be applied
(i) first, to pay interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (ii) second, to pay principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal then due to such parties.

(c)           If any Lender shall, by exercising
any right of set-off or counterclaim or otherwise, obtain payment in respect of
any principal of or interest on any of its Loans resulting in such Lender receiving
payment of a greater proportion of the aggregate amount of its Loans and
accrued interest thereon than the proportion received by any other Lender, then
the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Loans of other Lenders to the extent necessary so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans; provided
that (i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall

 38
 

 

 

be rescinded and the purchase price restored to the
extent of such recovery, without interest, and (ii) the provisions of this
subsection shall not apply to any payment made by the Borrower pursuant to and
in accordance with the express terms of this Agreement or any payment obtained
by a Lender as consideration for the assignment of or sale of a participation in
any of its Loans to any assignee or participant, other than to the Borrower or
any Subsidiary or Affiliate thereof (as to which the provisions of this
subsection shall apply).  The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

(d)           Unless, before the date on which any
payment is due to the Administrative Agent for the account of one or more
Lender Parties hereunder, the Administrative Agent receives from the Borrower
notice that the Borrower will not make such payment, the Administrative Agent
may assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance on such assumption, distribute to each relevant
Lender Party the amount due to it.  In
such event, if the Borrower has not in fact made such payment, each Lender
Party severally agrees to repay to the Administrative Agent forthwith on demand
the amount so distributed to such Lender Party with interest thereon, for each
day from and including the day such amount is distributed to it to but
excluding the day it repays the Administrative Agent, at a rate determined by
the Administrative Agent to represent its cost of overnight or short-term funds
(which determination shall be conclusive absent manifest error).

(e)           If any Lender fails to make any
payment required to be made by it pursuant to Section 2.04(b), 2.17(d) or
9.03(c), the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations under such Sections until all such unsatisfied obligations are
fully paid.

Section 2.18.  Lender’s
Obligation to Mitigate; Replacement of Lenders.  (a) If any Lender requests
compensation under Section 2.14, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.16, then such Lender shall use reasonable
efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder to another of
its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 2.14 or 2.16, as the case may be, in the future, (ii) would
not subject such Lender to any unreimbursed cost or expense and (iii) would not
otherwise be disadvantageous to such Lender. 
The Borrower

 39

 

 

shall pay all reasonable costs and expenses incurred
by any Lender in connection with any such designation or assignment.

(b)        If any Lender requests compensation
under Section 2.14, or if the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.16, or if any Lender defaults in its obligation to fund
Loans hereunder, or any Lender does not consent to a proposed amendment,
modification or waiver of any Loan Document requested by the Borrower which
requires the consent of all the Lenders to become effective and which is
approved by at least the Required Lenders, then the Borrower may, at its sole
expense and effort (including paying the processing and recordation fee referred
to in Section 9.04(b)), upon notice to such Lender and the Administrative
Agent, require such Lender to assign, without recourse (in accordance with and
subject to the restrictions contained in Section 9.04), all its interests,
rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts
such assignment); provided that
(i) the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, (ii)
such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon and all other amounts payable
to it hereunder, from the assignee (to the extent of such outstanding principal
and accrued interest and fees) or the Borrower (in the case of all other
amounts), (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.14 or payments required to be made pursuant to
Section 2.16, such assignment will result in a material reduction in such
compensation or payments and (iv) such assignment shall not conflict with any
law, rule or regulation or order of any Governmental Authority having
jurisdiction.  A Lender shall not be
required to make any such assignment if, prior thereto, as a result of a waiver
by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment cease to apply.

ARTICLE
3

REPRESENTATIONS AND WARRANTIES

The
Borrower represents and warrants to the Lender Parties that:

Section 3.01.  Organization;
Powers.  Each Marvell Company
is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to own
its property and assets and to carry on its business as now conducted and as
proposed to be conducted and, except where failures to do so, in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect, is
qualified to do

 40
 

 

 

business in, and is in good standing in, every
jurisdiction where such qualification is required.

Section 3.02.  Authorization;
Enforceability.  The
Transactions to be entered into by each Marvell Company are within its
corporate or other powers and have been duly authorized by all necessary
corporate or other and, if required, stockholder action.  This Agreement has been duly executed and
delivered by the Borrower and constitutes, and each other Loan Document to
which any Credit Party is to be a party, when executed and delivered by such
Credit Party, will constitute, a legal, valid and binding obligation of the
Borrower or such Credit Party, as the case may be, in each case enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law.

Section 3.03.  Approvals;
No Conflicts.  The Transactions
(a) do not require any consent or approval of, registration or filing with, or
other action by, any Governmental Authority or any other Person under any
material agreement or other instrument binding upon any Marvell Company or any
of its properties, except (i) such as have been obtained or made and are in
full force and effect and (ii) filings necessary to perfect the Transaction
Liens, (b) will not violate any applicable law or regulation or the charter,
by-laws or other organizational documents of any Marvell Company or any order,
judgment or decree of any Governmental Authority, (c) will not violate or
result in a default under any indenture, agreement or other instrument binding
upon any Marvell Company or any of its properties, or, except to the extent set
forth in the Acquisition Documentation or the Loan Documents, give rise to a
right thereunder to require any Marvell Company to make any payment and (d)
will not result in or require the creation or imposition of any Lien (other
than the Transaction Liens) on any property of any Marvell Company.

Section 3.04.  Financial
Statements; No Material Adverse Change.  (a) The Borrower has heretofore furnished to
the Lenders (i) its consolidated balance sheets as of January 31, 2004, January
29, 2005 and January 28, 2006 and the related consolidated statements of
income, shareholders’ equity and cash flows for each of the Fiscal Years then
ended, reported on by PricewaterhouseCoopers LLP, an independent registered
public accounting firm, and (ii) its consolidated balance sheet as of April 30,
2006 and the related consolidated statements of income, stockholders’ equity
and cash flows for the Fiscal Quarter then ended, all certified by its chief
financial officer.  Except for such
adjustments as may be required for the Stated Restatement Reasons, such
financial statements present fairly, in all material respects, the financial
position of the Borrower and its consolidated Subsidiaries as of such dates and
their results of operations and cash flows for such periods in accordance with
GAAP, subject to normal year-end

 41
 

 

 

adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above.

(b)        The Borrower has heretofore furnished to
the Lenders (i) the statements of assets to be acquired and liabilities to be
assumed of the Acquired Business as of the end of its 2004 and 2005 fiscal
years and the related statements of net revenues and direct expenses for each
of such fiscal years, reported on by Ernst & Young LLP, an independent
registered public accounting firm, and (ii) an interim statement of assets to
be acquired and liabilities to be assumed and an interim statement of net
revenues and direct expenses, in each case with respect to the Acquired
Business, for the six month period ended July 1, 2006.

(c)        Immediately prior to giving effect to
the Transactions, none of the Marvell Companies has, as of the Closing Date,
any material liabilities (direct or contingent), unusual long-term
commitments or unrealized losses, except as disclosed in the financial
statements referred to above or the notes thereto or in the Information
Memorandum.  After giving effect to the
Transactions, none of the Marvell Companies has, as of the Closing Date, any
liabilities (direct or contingent) or unusual long-term commitments or
unrealized losses that, in the aggregate, could reasonably be expected to
result in a Material Adverse Effect, except as disclosed in the financial
statements referred to above or the notes thereto or in the Information Memorandum.

(d)        Since April 1, 2006 there has not been
any event, occurrence, development or state of circumstances or facts that has
had or has a Seller Material Adverse Effect (as defined in the Asset Purchase
Agreement).

(e)        Since April 29, 2006, there has not been
any event, occurrence, development or state of circumstances or facts that has
had or has a Buyer Material Adverse Effect (as defined in the Asset Purchase
Agreement), other than any event, change or circumstance arising primarily out
of the Borrower’s stock option practices prior to the date hereof.

Section 3.05.  Properties.
 (a)
Each Marvell Company has good title to, or valid leasehold interests in, all
real and personal property material to its business (including all its
Mortgaged Properties), except for defects in title that do not materially
interfere with its ability to conduct its business as currently conducted or to
utilize such properties for their intended purposes. Except to the extent
permitted by this Agreement, all such properties are free and clear of Liens.

(b)        Each Marvell Company owns, or is
licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by the
Marvell Companies does not infringe upon the rights of any other Person, except
for such failures to own or license or

 42
 

 

 

infringements that, in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

(c)        Schedule 3.05 sets forth the correct
address and a brief description of each real property that is owned by any
Domestic Subsidiary as of the Closing Date after giving effect to the
Transactions.

Section 3.06.  Litigation
and Environmental Matters. 
(a) Except as disclosed in Schedule 3.06, there are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority pending
against or, to the knowledge of the Borrower, threatened against or affecting
any Marvell Company (i) which if determined adversely to the Marvell Companies,
in the aggregate, could reasonably be expected to result in a Material Adverse
Effect or (ii) that involve any of the Loan Documents or the Transactions.

(b)        Except for matters that, in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, no Marvell Company (i) has failed to comply with any Environmental Law
or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) is subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

Section 3.07.  Compliance
with Laws and Agreements. 
Each Marvell Company is in compliance with all laws, regulations,
judgments, orders and decrees of any Governmental Authority applicable to it or
its property and all indentures, agreements and other instruments binding on it
or its property, except where failures to do so, in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect and except for
non-compliance as a result of Borrower’s stock option practices prior to the
date hereof. No Default has occurred and is continuing.

Section 3.08.  Investment
Company Status; Regulatory Restrictions on Borrowing.  No Marvell Company is required to be
registered as an “investment company” as defined in, or subject to regulation
under, the Investment Company Act of 1940. 
No Marvell Company is subject to regulation under any law, treaty, rule
or regulation or determination of an arbitrator or court or other Governmental
Authority (other than Regulations G, U and X of the Federal Reserve Board)
which limits its ability to incur any Debt under this Agreement or any
promissory note.

Section 3.09.  Taxes.  Each Marvell Company has timely filed or
caused to be filed all Tax returns and reports required to have been filed by
it and has paid or caused to be paid all Taxes required to have been paid by
it, except (a) any Taxes that are being contested in good faith by appropriate
proceedings and for

 43
 

 

 

which the relevant Marvell Company has set aside on
its books adequate reserves or (b) to the extent that failures to do so, in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

Section 3.10.  ERISA.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected
to result in a Material Adverse Effect. 
Based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87, with respect to each Plan, the present value of
the accumulated benefit obligations thereunder did not, as of the date of the
most recent financial statements reflecting such amounts, exceed the fair
market value of the assets thereof.

Section 3.11.  Disclosure.  The Borrower has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which any
Marvell Company is subject, and all other matters known to any of them, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  Neither the
Information Memorandum nor any of the other reports, financial statements,
certificates or other information furnished by or on behalf of any Credit Party
to the Administrative Agent or any Lender in connection with the negotiation of
this Agreement or any other Loan Document or delivered hereunder or thereunder
(as modified or supplemented by other information so furnished), when read
together, contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to projected
financial information, the Borrower represents only that such information was
prepared in good faith based on assumptions believed to be reasonable at the
time; provided further that the financial
statements of the Marvell Companies prepared with respect to any period ending
on or prior to the Closing Date may be restated for the Stated Restatement
Reasons.

Section 3.12.  Subsidiaries.  Schedule 3.12 sets forth the name of, and the
ownership interest of the Borrower in, each of its Subsidiaries and identifies
each Subsidiary that is a Guarantor, in each case as of the Closing Date.  All the Borrower’s Subsidiaries are, and will
at all times be, fully consolidated in its consolidated financial statements.
The shares of capital stock or other ownership interests in each of the
Borrower’s Subsidiaries are fully paid and non-assessable and are owned free
and clear of all Liens (other than the Transaction Liens).

Section 3.13.  Insurance.  As of the Closing Date, the insurance
required under Section 5.07 has been obtained and is in full force and effect
and all premiums in respect of such insurance have been paid.  The Borrower believes that the insurance
maintained by or on behalf of the Borrower and its Subsidiaries is adequate.

 44
 

 

 

Section 3.14.  Labor
Matters.  As of the Closing
Date, there are no strikes, lockouts or slowdowns against any Marvell Company
pending or, to the knowledge of the Borrower, threatened.  The hours worked by and payments made to
employees of the Marvell Companies have not violated the Fair Labor Standards
Act or any other applicable Federal, state, local or foreign law dealing with
such matters, other than alleged violations disclosed in Schedule 3.06.  All payments due from any Marvell Company, or
for which any claim may be made against any Marvell Company, on account of
wages and employee health and welfare insurance and other benefits, have been
paid or accrued as a liability on the books of such Marvell Company.

Section 3.15.  Solvency.  Immediately after the Transactions to occur
on the Closing Date are consummated and after giving effect to the application
of the proceeds of each Loan made on the Closing Date, (a) the fair value of
the assets of each Credit Party, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise; (b) the present fair
saleable value of the property of each Credit Party will exceed the amount that
will be required to pay the probable liability of its debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (c) each Credit Party will be able to
pay its debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured; and (d) no Credit Party will
have unreasonably small capital with which to conduct the business in which it
is engaged as such business is now conducted and proposed to be conducted after
the Closing Date.

Section 3.16.  Acquisition
Documentation.  As of the
Closing Date, (a)Schedule 3.16 lists all of the Acquisition Documentation and
(b) the Acquisition Documentation is in full force and effect.

Section 3.17.  No
Set-Off; Ranking; Immunity. 
(a)   Once the Loans have been
made to the Borrower, the obligations of the Credit Parties under the Loan
Documents are not subject to any defense, set-off or counterclaim by any Credit
Party or any circumstance whatsoever which might constitute a legal or
equitable discharge from its obligations thereunder.

(b)        The obligations of each Credit Party
under the Loan Documents constitute direct and unconditional obligations of
such Credit Party and, except for rights with respect to Collateral, with
respect to which the Lenders will be entitled to the benefits set forth in the
applicable Security Document, will rank at least pari passu
in right of payment with all other Debt and other obligations of such Credit
Party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

 45
 

 

 

(c)        No Credit Party or any of its property
has any immunity from the jurisdiction of any court or from any legal process
(whether through service or notice, attachment prior to judgment, attachment in
aid of execution, execution or otherwise) under the laws of Bermuda, Singapore
or other relevant jurisdiction in respect of its obligations under the Loan
Documents.  The Loan Documents are in
proper legal form under the laws of Bermuda and Singapore for the enforcement
thereof in accordance with their respective terms against the Credit Parties
under such laws.  To ensure the legality,
validity, enforceability or admissibility into evidence in Bermuda and
Singapore of the Loan Documents, it is not necessary that the Loan Documents or
any other document be filed or recorded with any Governmental Authority in
Bermuda or Singapore, as the case may be.

(d)        It is not necessary in order for the
Administrative Agent or any Lender to enforce any rights or remedies under the
Loan Documents or solely by reason of the execution, delivery and performance
by any Credit Party of the Loan Documents that the Administrative Agent or any
Lender be licensed or qualified with any Governmental Authority in Bermuda or
Singapore, or be entitled to carry on business in any of the foregoing.

Section 3.18.  Other.  (a)  
The Borrower and each other Marvell Company incorporated in Bermuda is
designated as non-resident in Bermuda for exchange control purposes.

(b)        The Borrower and each other Marvell
Company incorporated in Bermuda has received an assurance from the Minister of
Finance of Bermuda that, in the event of there being enacted in Bermuda any
legislation imposing tax computed on profits or income, or computed on any
capital assets, gain or appreciation or any tax in the nature of estate duty or
inheritance tax, such tax shall not until 28 March 2016 be applicable to the
Borrower or such Marvell Company, as applicable, or to any of its operations.

(c)        The Borrower and each other Marvell
Company incorporated in Bermuda is not licensed to and does not carry on
long-term insurance business.

(d)        The Borrower and each other Marvell
Company incorporated in Bermuda does not maintain a place of business (as
defined in section 4(6) of the Investment Business Act 2003 of Bermuda) in
Bermuda.

(e)        The Borrower and each other Marvell
Company incorporated in Bermuda is not carrying on a deposit-taking business in
or from within Bermuda under the provisions of the Banks and Deposit Companies
Act 1999 of Bermuda.

(f)         Each transaction entered into pursuant
to this Agreement and any other Loan Document has been entered into in good
faith without the view or intention of giving any party thereto a preference
over other creditors, without

 46
 

 

 

fraudulent purposes, for the bona fide benefit of the
parties thereto for full consideration and not at an undervalue.

(g)        No purpose of the transaction or
transactions pursuant to which the Borrower and each other Marvell Company
incorporated in Bermuda has entered into this Agreement and any other Loan
Document would be contrary to the public policy of Bermuda.

(h)        No Credit Party has a place of business
in the State of New York or conducts any business in the State of New York that
would subject such Credit Party to regulation under the laws of the State of
New York.

ARTICLE
4

CONDITIONS

Section 4.01.  Closing
Date.  The obligations of the
Lenders to make Loans hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance
with Section 9.02):

(a)        The Administrative Agent (or its
counsel) shall have received from each party hereto either (i) a counterpart of
this Agreement signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include facsimile
transmission of a signed signature page) that such party has signed a
counterpart of this Agreement.

(b)        The Administrative Agent shall have
received a favorable written opinion (addressed to the Administrative Agent and
the Lenders and dated the Closing Date) of each of (i) Pillsbury Winthrop Shaw
Pittman LLP, special New York and California counsel for the Borrower,
substantially in the form of Exhibit B-1, (ii) Appleby Hunter Bailhache,
special Bermuda counsel for the Borrower, substantially in the form of Exhibit
B-2, (iii) Wong Partnership, special Singapore counsel for the Borrower,
substantially in the form of Exhibit B-3 and (iv) any other counsel reasonably
specified by the Administrative Agent, and, in the case of each opinion
required by this subsection, covering such other matters relating to the Credit
Parties, the Loan Documents or the Transactions as the Required Lenders shall reasonably
request.  The Borrower requests such
counsel to deliver such opinions.

(c)        The Administrative Agent shall have
received such documents and certificates as the Administrative Agent or its
counsel may reasonably request relating to the organization, existence and, if
applicable, good standing of each Credit Party, the authorization of the
Transactions and any other legal matters relating to the Credit Parties, the
Loan Documents or the Transactions, all in form and substance reasonably
satisfactory to the Administrative Agent and its counsel.

 47
 

 

 

(d)        The Administrative Agent shall have
received a certificate, dated the Closing Date and signed by the President, a
Vice President or a Financial Officer of the Borrower, confirming compliance
with the conditions set forth in clauses (f), (g), (m) and (n).

(e)        The Administrative Agent shall have
received a certificate, dated the Closing Date and signed by the President, a
Vice President or a Financial Officer of the Borrower, certifying (i) as to the
percentage that the sum of the total assets of the Credit Parties (excluding
any assets of any Subsidiary of any Credit Party that is not itself a Credit
Party) constitute of the total assets of the Borrower and its Subsidiaries
determined on a consolidated basis in accordance with GAAP on the Closing Date,
(ii) as to the percentage that the total revenues of the Credit Parties
(excluding any revenues of any Subsidiary of any Credit Party that is not
itself a Credit Party) for the period of four consecutive Fiscal Quarters most
recently ended prior to the Closing Date constitute of the total revenues of
the Borrower and its Subsidiaries for such period determined on a consolidated
basis in accordance with GAAP, (iii) as to the percentage that the sum of the
total assets of the Marvell Companies whose Equity Interests are subject to a
perfected first-priority pledge pursuant to a Pledge Agreement (each a “Pledged Marvell Company”) (excluding any assets of any
Subsidiary of any Pledged Marvell Company that is not itself a Pledged Marvell
Company) constitutes of the total assets of the Borrower and its Subsidiaries
determined on a consolidated basis in accordance with GAAP on the Closing Date
and (iv) as to the percentage that the total revenues of the Pledged Marvell Companies
(excluding any revenues of any Subsidiary of any Pledged Marvell Company that
is not itself a Pledged Marvell Company) for the period of four consecutive
Fiscal Quarters most recently ended at or prior to the Closing Date constitutes
of the total revenues of the Borrower and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP. The percentages
referred to in such certificate shall be in a minimum amount necessary to
confirm that the Minimum Guarantee Condition and the Minimum Stock Collateral
Condition are satisfied on the Closing Date.

(f)         After giving effect to the Transactions
and the other transactions contemplated hereby, the Marvell Companies shall
have no outstanding Debt or preferred stock other than (i) the Loans and (ii)
other Debt permitted under Section 6.01(a) (other than Section 6.01(a)(vii)).

(g)        After giving effect to the Transactions
and the other transactions contemplated hereby, the ratio of Total Debt on the
Closing Date to Consolidated EBITDA for the four Fiscal Quarter period ended
July 29, 2006 shall not exceed 1.5:1.0.

(h)        The Credit Parties shall have paid all
fees and other amounts due and payable to the Lender Parties on or before the
Closing Date, including, to the extent invoiced, all out-of-pocket expenses
(including fees, charges and

 48
 

 

 

disbursements of counsel) required to be reimbursed or
paid by any Credit Party under the Loan Documents.

(i)         The Administrative Agent (or its
counsel) shall have received from each party to each of the agreements referred
to below a counterpart thereto signed on behalf of such party (or written
evidence satisfactory to the Administrative Agent (which may include facsimile
transmission of a signed signature page) that such party has signed such a
counterpart)): (i) the Guarantee Agreement, (ii) the US Pledge Agreement, (iii)
the Bermuda Pledge Agreement and (iv) the Singapore Share Charge. All
outstanding Equity Interests in Marvell International Ltd., Marvell Asia Pte
Ltd., Marvell Technology, Inc. and Marvell International Technology Limited and
83% of all outstanding Equity Interests in MSI shall have been pledged pursuant
to the Pledge Agreements and the Administrative Agent shall have received all
certificates or other instruments representing such Equity Interests, together
with stock powers or other instruments of transfer with respect thereto
endorsed in blank. The Administrative Agent shall have received the results of
recent Lien and judgment searches in each relevant jurisdiction with respect to
the Credit Parties, and such searches shall reveal no Liens on any of the
assets of the Credit Parties other than Liens that are permitted by Section
6.02 or that have been released.

(j)         The Administrative Agent shall have
received a certificate, dated the Closing Date and signed by the President, a
Vice President or a Financial Officer of the Borrower, in form and substance
reasonably satisfactory to the Administrative Agent, to the effect that (i) the
insurable properties of the Marvell Companies are adequately insured by
financially sound and reputable insurance companies to such extent and against
such risks (and with such deductibles, retentions and exclusions), as is
reasonable and customary for companies in the same or similar business
operating in the same or similar locations and (ii) the Marvell Companies
maintain such other insurance on their insurable properties as may be required
by law.

(k)        All consents and approvals required to
be obtained from any Governmental Authority or other Person in connection with
the Acquisition shall have been obtained, and all applicable waiting periods
and appeal periods shall have expired, in each case without the imposition of
any burdensome condition.  The
Acquisition shall have been, or substantially simultaneously with the funding
of Loans on the Closing Date shall be, consummated in accordance with the Asset
Purchase Agreement dated as of June 26, 2006 and related Acquisition
Documentation entered into in connection therewith and with applicable law,
without any amendment to or waiver of any term or condition or consent
thereunder that is materially adverse to the rights of or benefits available to
the Lenders (as reasonably determined by the Administrative Agent) unless
approved by the Administrative Agent (such approval not to be unreasonably
withheld). The Administrative Agent shall have received copies of the
Acquisition

 49
 

 

 

Documentation and all certificates, opinions and other
documents delivered thereunder, certified by a Financial Officer as complete
and correct.

(l)         The Administrative Agent shall have
received a solvency certificate, in form and substance satisfactory to the
Lenders, from a Financial Officer, with respect to the solvency of the Credit
Parties after giving effect to the Transactions.

(m)       The representations and warranties of
each Credit Party set forth in the Loan Documents shall be true and correct on
and as of the Closing Date.

(n)        Immediately prior to and immediately
after giving effect to the Borrowings on the Closing Date, no Default shall
have occurred and be continuing.

(o)        The Administrative Agent shall have
received a letter from the Process Agent referred to in Section 9.11 confirming
its appointment as such.

(p)        The Administrative Agent shall have
received a Borrowing Request.

(q)        The Administrative Agent shall have
received, at least five Business Days prior to the Closing Date, all
documentation and other information required by regulatory authorities under
applicable “know your customer” and anti-money laundering rules and regulations,
including the Patriot Act.

Promptly after the Closing Date occurs, the
Administrative Agent shall notify the Borrower and the Lenders thereof, and
such notice shall be conclusive and binding.

ARTICLE
5

AFFIRMATIVE COVENANTS

Until
all the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full,
the Borrower covenants and agrees with the Lenders that:

Section 5.01.  Financial
Statements and Other Information. 
The Borrower will furnish to the Administrative Agent for distribution
to each Lender:

(a)        within 90 days after the end of the
Fiscal Year ending January 27, 2007, its consolidated balance sheet as of the
end of such Fiscal Year and the related statements of operations, stockholders’
equity and cash flows for such Fiscal Year, setting forth in each case in
comparative form the figures for the corresponding period or periods of (or, in
the case of the balance sheet, as of the end of) the previous Fiscal Year, all
certified by a Financial Officer as presenting

 50
 

 

 

fairly in all material respects the financial
position, results of operations and cash flows of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
before any adjustments that may be required because of the Stated Restatement
Reasons, subject to normal year-end adjustments and the absence of footnotes; provided that the requirements of this paragraph will be
satisfied by the filing by the Borrower of its Form 10-K for such Fiscal Year,
so long as such filing is made within the time period required by the SEC;

(b)        commencing with the Fiscal Year ending
January 26, 2008, within 90 days after the end of each Fiscal Year, its audited
consolidated balance sheet as of the end of such Fiscal Year and the related
statements of operations, stockholders’ equity and cash flows for such Fiscal
Year, setting forth in each case in comparative form the figures for the
previous Fiscal Year, all reported on by PricewaterhouseCoopers LLP or other
independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) as presenting fairly in all material
respects the financial position, results of operations and cash flows of the
Borrower and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP; provided that
the requirements of this paragraph will be satisfied by the filing by the
Borrower of its Form 10-K for such Fiscal Year, so long as such filing is made
within the time period required by the SEC;

(c)        commencing with the Fiscal Quarter
ending October 28, 2006, within 45 days after the end of each of the first
three Fiscal Quarters of each Fiscal Year, its consolidated balance sheet as of
the end of such Fiscal Quarter and the related statements of operations,
stockholders’ equity and cash flows for such Fiscal Quarter and for the then
elapsed portion of such Fiscal Year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous Fiscal Year, all certified by
a Financial Officer as presenting fairly in all material respects the financial
position, results of operations and cash flows of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
before any adjustments that may be required because of the Stated Restatement
Reasons, subject to normal year-end adjustments and the absence of footnotes; provided that the requirements of this paragraph will be
satisfied by the filing by the Borrower of its Form 10-Q for such Fiscal
Quarter, so long as such filing is made within the time period required by the
SEC;

(d)        concurrently with each delivery of
financial statements under clause (a), (b) or (c) above (or the filing of the
corresponding Form 10-K or Form 10-Q), a certificate of a Financial Officer (i)
certifying as to whether a Default exists and, if a Default exists, specifying
the details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating
compliance with Section 6.13 and Section 6.14, (iii) commencing

 51
 

 

 

with the delivery of such financial statements for the
Fiscal Quarter ending January 27, 2007, setting forth any material variance in
such financial statements from the corresponding budget prepared with respect
thereto pursuant to Section 5.01(f) (or, if applicable, from the corresponding
projected results contained in the projections model distributed to potential
lenders in connection with the syndication of the Loans) and specifying the
reasons therefor (it being agreed that, in addition to comparisons on a quarterly
basis, comparisons on an annual basis will be required commencing with the
delivery of such financial statements for the Fiscal Year ending January 28,
2008), (iv) setting forth reasonably detailed calculations demonstrating
compliance with the Minimum Guarantee Condition and, if applicable, the Minimum
Stock Collateral Condition and (v) stating whether any change in GAAP or in the
application thereof has occurred since the date of the Borrower’s most recent
audited financial statements referred to in Section 3.04 or delivered pursuant
to this Section and, if any such change has occurred, specifying the effect of
such change on the financial statements accompanying such certificate;

(e)        concurrently with each delivery of
financial statements under clause (b) above and with the filing of the Borrower’s
Form 10-K for the Fiscal Year ending January 27, 2007, a certificate of the
accounting firm that reported on such financial statements (or the financial
statements included in the Form 10-K for the Fiscal Year ending January 27,
2007, as the case may be) stating whether during the course of their
examination of such financial statements they obtained knowledge of any Default
(which certificate may be limited to the extent required by accounting rules or
guidelines);

(f)         within 45 days after the beginning of
each Fiscal Year, a detailed consolidated budget for such Fiscal Year prepared
on a quarterly basis (including a projected consolidated balance sheet and
related statements of projected operations and cash flows as of the end of and
for each Fiscal Quarter in such Fiscal Year and setting forth the material
assumptions used in preparing such budget) and, promptly when available, any
significant revisions of such budget; provided that
for the Fiscal Year beginning January 28, 2007, the Borrower may, upon
providing notice to the Administrative Agent of its intention to do so, elect
to satisfy the requirements of this clause by instead furnishing (to the extent
not already furnished) the projected results for such Fiscal Year contained in
the projections model distributed to potential lenders in connection with the
syndication of the Loans;

(g)        promptly after the same become publicly
available, copies of all periodic and other reports, proxy statements and other
materials filed by any Marvell Company with the SEC, or any Governmental
Authority succeeding to any or all of the functions of the SEC, or with any
national securities exchange, or distributed by the Borrower to its
shareholders generally;

 52
 

 

 

(h)        promptly (i) of any public announcement
by Moody’s of any change or possible change in its corporate family rating of
the Borrower or by S&P of any change or possible change in its corporate
rating of the Borrower or, in each case, of any such rating no longer having a
stable outlook and (ii) of any public announcement by Moody’s or S&P of any
change or possible change in its rating of the Loans or of any such rating no
longer having a stable outlook; and

(i)         promptly following any request
therefor, such other information regarding the operations, business affairs and
financial condition of any Marvell Company, or compliance with the terms of any
Loan Document, as the Administrative Agent or any Lender may reasonably request
(including any information required by any bank regulatory authority under any
applicable “know your customer” or anti-money laundering rule or regulation
(including the Patriot Act)).

Section 5.02.  Notice of
Material Events.  The Borrower
will furnish to the Administrative Agent and each Lender prompt written notice
of the following:

(a)        the occurrence of any Default;

(b)        the filing or commencement of, or any
written notice of intention of any Person to file or commence, any action, suit
or proceeding by or before any arbitrator or Governmental Authority against or
affecting any Marvell Company or any Affiliate thereof that, if adversely
determined, could reasonably be expected to result in a Material Adverse
Effect;

(c)        the occurrence of any ERISA Event that,
alone or together with any other ERISA Events that have occurred, could
reasonably be expected to result in liabilities of the Marvell Companies in an
aggregate amount exceeding $25,000,000; and

(d)        any other development that results in,
or could reasonably be expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be
accompanied by a statement of a Financial Officer or other executive officer of
the Borrower setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

Section 5.03.  Information
Regarding Collateral.  (a) The
Borrower will furnish to the Administrative Agent prompt written notice of any
change in (i) the corporate name or any trade name used to identify any Credit
Party in the conduct of its business, (ii) the identity or corporate structure
of any Credit Party or (iii) the Federal Taxpayer Identification Number of any
Credit Party.  If such Credit Party has
granted or has purported to grant a security interest in any Collateral,

 53

 

 

the Borrower will not effect or permit any change
referred to in the preceding sentence unless all filings have been made under
the Uniform Commercial Code and all other actions have been taken that are
required so that such change will not at any time adversely affect the
validity, perfection or priority of any Transaction Lien on any of such
Collateral.

(b)        The Borrower will promptly notify the
Administrative Agent if any material portion of the Collateral is damaged or
destroyed.

(c)        Each year, at the time annual financial
statements with respect to the preceding Fiscal Year are delivered pursuant to
Section 5.01, if the Security Agreement or a Mortgage is required to be in
effect to satisfy Section 5.12(d) at such time, the Borrower will deliver to the
Administrative Agent a certificate of a Financial Officer  (i) setting forth the information required
pursuant to Section A of the Perfection Certificate or confirming that there
has been no change in such information since the date of the most recent Perfection
Certificate delivered pursuant to this subsection and (ii) certifying that all
Uniform Commercial Code financing statements (including fixture filings, as
applicable) or other appropriate filings, recordings or registrations,
including all refilings, rerecordings and reregistrations, containing a
description of the Collateral have been filed of record in each appropriate
office in each jurisdiction identified pursuant to clause (i) above to the
extent necessary to protect and perfect the Transaction Liens for a period of
at least 18 months after the date of such certificate (except as noted therein
with respect to any continuation statements to be filed within such period).

Section 5.04.  Existence;
Conduct of Business.  Each
Marvell Company will do or cause to be done all things necessary to preserve,
renew and keep in full force and effect its legal existence and, except where
the failures to do so in the aggregate for all Marvell Companies could not
reasonably be expected to have a Material Adverse Effect, the rights, licenses,
permits, privileges, franchises, patents, copyrights, trademarks and trade
names material to the conduct of its business; provided
that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

Section 5.05.  Payment of
Obligations.  Each Marvell
Company will pay its Debt and other obligations, including Tax liabilities,
before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) the relevant Marvell Company has set aside on its books
adequate reserves with respect thereto in accordance with GAAP, (c) such
contest effectively suspends collection of the contested obligation and the
enforcement of any Lien securing such obligation and (d) the failure to make
payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect.

 54
 

 

 

Section 5.06.  Maintenance
of Properties.  Each Marvell
Company will maintain all property material to the conduct of its business in
good working order and condition, ordinary wear and tear excepted.

Section 5.07.  Insurance.  (a) The Marvell Companies will keep their
insurable properties adequately insured at all times by financially sound and
reputable insurance companies to such extent and against such risks (and with
such deductibles, retentions and exclusions), including fire, general liability
insurance and business interruption insurance and other risks insured against
by extended coverage, as is reasonable and customary for companies in the same
or similar business operating in the same or similar locations, will maintain
such other insurance as may be required by law, and will maintain such other
insurance as otherwise required by the Security Documents.

(b)        Without limiting subsection (a), if at
any time the area in which any Mortgaged Property is located is designated a
“flood hazard area” in any Flood Insurance Rate Map published by the Federal
Emergency Management Agency (or any successor agency), the Borrower shall
obtain flood insurance in such total amount as the Administrative Agent or the
Required Lenders may from time to time require, and otherwise comply with the
National Flood Insurance Program as set forth in the Flood Disaster Protection
Act of 1973, as amended from time to time. If at any time the area in which any
Mortgaged Property is located is designated a “Zone 1” area, the Borrower shall
obtain earthquake insurance in such total amount as the Administrative Agent or
the Required Lenders may from time to time require.

Section 5.08.  Casualty
and Condemnation.  The
Borrower (a) will furnish to the Administrative Agent and the Lenders prompt
written notice of any casualty or other insured damage to any material portion
of the Collateral or the commencement of any action or proceeding for the
taking of any Collateral or any part thereof or interest therein under power of
eminent domain or by condemnation or similar proceeding and (b) will ensure
that the Net Proceeds of any such event (whether in the form of insurance
proceeds, condemnation awards or otherwise) are collected and applied in
accordance with Section 2.09.

Section 5.09.  Proper
Records; Rights to Inspect. 
Each Marvell Company will keep proper books of record and account in
which complete and correct entries are made of all transactions relating to its
business and activities.  Each Marvell
Company will permit any representatives designated by the Administrative Agent
or any Lender, at the cost and expense of the Administrative Agent or such
Lender (or if an Event of Default shall have occurred and be continuing, at the
cost and expense of the Borrower), as applicable, upon reasonable prior notice,
to visit and inspect its properties, to examine and make extracts from its
books and records, and to discuss its affairs, finances and condition with its
officers and independent accountants, all at

 55
 

 

 

reasonable times, but not more than three times during
any calendar year unless an Event of Default has occurred and is continuing, in
which event, as often as reasonably requested.

Section 5.10.  Compliance
with Laws.  (a) Each Marvell
Company will comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property, except where failures
to do so, in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect.

(b)        Without limiting subsection (a), each
Marvell Company will comply, and cause all lessees and other persons occupying
its properties to comply, in all respects with all Environmental Laws and
permits applicable to its operations and properties, except where failures to
do so, in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect, and conduct any remedial action in accordance with
Environmental Laws.

Section 5.11.  Use of
Proceeds.  The proceeds of the
Loans will be used only to pay (a) amounts payable under the Acquisition
Documentation as consideration for the Acquisition and (b) fees and expenses
payable in connection with the Transactions. No part of the proceeds of any
Loan will be used, directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Federal Reserve Board, including
Regulations T, U and X.

Section 5.12.  Additional
Guarantees and Collateral. (a) If the Minimum Guarantee Condition is
not satisfied at any time, the Borrower will promptly notify the Administrative
Agent and the Lenders of this fact and promptly (and in any event within seven
Business Days or such longer period as the Administrative Agent shall agree,
such agreement not to be unreasonably withheld or delayed) cause one or more
Subsidiaries reasonably acceptable to the Administrative Agent to deliver to
the Administrative Agent a supplement to the Guarantee Agreement in the form
specified therein, duly executed and delivered on behalf of each such
Subsidiary, to the extent necessary to ensure that immediately after giving
effect thereto the Minimum Guarantee Condition is satisfied, whereupon each
such Subsidiary will become a “Guarantor” for purposes of the Loan Documents.

(b)        If the Minimum Stock Collateral
Condition is not satisfied (i) at any time prior to the Trigger Date or (ii) at
any time on or after the Trigger Date and (1) the corporate family rating of
the Borrower is not at least Baa3 by Moody’s or the corporate rating of the
Borrower is not at least BBB- by S&P, in each case with no negative outlook
or (2) the Borrower does not have a corporate family rating from Moody’s or a
corporate rating from S&P, the Borrower will promptly notify the
Administrative Agent and the Lenders of this fact and promptly (and in any
event within ten Business Days or such longer period as the Administrative
Agent shall agree, such agreement not to be unreasonably withheld or delayed)

 56
 

 

 

cause one or more Credit Parties to deliver to the
Administrative Agent a Pledge Agreement in the form specified herein (or, in
the case of a Credit Party that is already party to a Pledge Agreement, a
supplement to such Pledge Agreement in the form specified therein), duly
executed and delivered on behalf of each such Credit Party, pursuant to which
such Credit Parties shall have pledged all the Equity Interests in one or more
Marvell Companies organized under the laws of Bermuda, Singapore or that is a
Domestic Subsidiary or in any other Marvell Company reasonably acceptable to
the Administrative Agent, to the extent necessary to ensure that immediately
after giving effect thereto the Minimum Stock Collateral Condition is
satisfied, whereupon, unless already a Lien Grantor, each such Credit Party
will become a “Lien Grantor” for purposes of the Loan Documents.

(c)        Concurrently with the delivery to the
Administrative Agent of any Pledge Agreement or supplement thereto pursuant to
subsection (b), the Borrower shall cause each pledgor party thereto to deliver
to the Administrative Agent all certificates or other instruments representing
the Equity Interests pledged thereunder, together with stock powers or other
instruments of transfer with respect thereto endorsed in blank.

(d)        Without limiting the foregoing
provisions, if at any time on or after the Trigger Date (1) the corporate
family rating of the Borrower is not at least Ba1 by Moody’s or the corporate
rating of the Borrower is not at least BB+ by S&P, in each case with no
negative outlook or (2) the Borrower does not have a corporate family rating
from Moody’s or a corporate rating from S&P, the Borrower will promptly
notify the Administrative Agent and the Lenders of this fact and thereafter for
so long as such condition exists (x) promptly (and in any event within seven
Business Days or such longer period as the Administrative Agent shall agree,
such agreement not to be unreasonably withheld or delayed) cause each Domestic
Subsidiary not already party thereto to deliver to the Administrative Agent a
supplement to the Guarantee Agreement in the form specified therein, duly
executed and delivered on behalf of each such Domestic Subsidiary, (y) promptly
(and in any event within ten Business Days or such longer period as the
Administrative Agent shall agree, such agreement not to be unreasonably
withheld or delayed) cause each Domestic Subsidiary to deliver to the
Administrative Agent a counterpart to the Security Agreement duly executed and
delivered on behalf of such Domestic Subsidiary (or in the case of any Person
that subsequently becomes a Domestic Subsidiary, a supplement to the Security
Agreement, in the form specified therein, duly executed and delivered on behalf
of such Domestic Subsidiary) and (z) promptly (and in any event within 45 days
or such longer period as the Administrative Agent shall agree, such agreement
not to be unreasonably withheld or delayed) cause each Domestic Subsidiary to deliver
to the Administrative Agent (A) counterparts of a Mortgage with respect to each
Mortgaged Property duly executed and delivered by the record owner of such
Mortgaged Property, (B) a policy or policies of title insurance issued by a

 57
 

 

 

nationally recognized title insurance company insuring
the Lien of each such Mortgage as a valid first Lien on the Mortgaged Property
described therein, free of any other Liens except as expressly permitted by
Section 6.02, together with such endorsements, coinsurance and reinsurance as
the Administrative Agent or the Required Lenders may reasonably request and (C)
such surveys, abstracts and appraisals as the Administrative Agent or the
Required Lenders may reasonably request with respect to any such Mortgage or
Mortgaged Property.

(e)        If any real property or improvements
thereto are owned or are acquired by any Domestic Subsidiary at a time when
subsection (d) is applicable and the fair market value thereof exceeds
$10,000,000, the Borrower will notify the Administrative Agent and the Lenders
thereof, and will promptly (and in any event within 45 days or such longer
period as the Administrative Agent shall agree, such agreement not to be
unreasonably withheld or delayed) cause such Domestic Subsidiary to deliver to
the Administrative Agent the items referred to in subsection (d)(z) with
respect to such assets.

(f)         In connection with any of the
foregoing, the Borrower shall deliver or cause to be delivered to the
Administrative Agent evidence that all documents and instruments, including
Uniform Commercial Code financing statements and Mortgages, required by law or
reasonably requested by the Administrative Agent to be filed, registered or
recorded to create the Liens intended to be created by the applicable Security
Documents and perfect or record such Liens to the extent, and with the
priority, required by the Security Documents, shall have been filed, registered
or recorded or delivered to the Administrative Agent for filing, registration
or recording; provided that the actions
required of the Borrower and the Domestic Subsidiaries under subsection (d)(y)
and this subsection (f) to perfect and ensure the priority of the security
interests granted by the Domestic Subsidiaries under the Security Agreement
shall be limited to filings of Uniform Commercial Code financing statements,
possession of Collateral the security interests in which can be perfected only
by taking possession, execution and delivery of agreements required to give the
Administrative Agent control over any deposit account, securities account and
security entitlement included in the Collateral under the Security Agreement
and, to the extent any additional actions are required to effect such
perfection or priority as a result of a change in law, such actions.

(g)        In connection with any of the foregoing,
the Borrower shall deliver or cause to be delivered to the Administrative Agent
any legal opinions and other documents as the Administrative Agent may
reasonably request relating to the existence of the relevant Credit Party, the
corporate or other authority for and the validity of the relevant Security
Documents and the creation and perfection of the Lien purportedly created
thereby and any other matters relevant thereto, all in form and substance
reasonably acceptable to the Administrative Agent.

 58
 

 

 

Section 5.13.  Further
Assurances.  Each Marvell
Company will execute and deliver any and all further documents, financing
statements, agreements and instruments, and take all such further actions
(including the filing and recording of financing statements, fixture filings,
mortgages, deeds of trust and other documents), that may be required under any
applicable law, or that the Administrative Agent or the Required Lenders may
reasonably request, to cause the requirements of Section 5.12 to be and remain
satisfied, all at the Borrower’s expense. 
The Borrower will provide to the Administrative Agent, from time to time
upon request, evidence reasonably satisfactory to the Administrative Agent as
to the perfection and priority of the Transaction Liens created or intended to
be created by the Security Documents.

Section 5.14.  Separateness.  Each Marvell Company will maintain its
separate legal existence and character, including by maintaining customary
corporate, limited liability company or other applicable formalities and by
maintaining separate corporate and business records.

Section 5.15.  Ratings.  From and after the date on which each such
rating is obtained, the Borrower shall use its commercially reasonable efforts
to thereafter cause to be maintained (x) a credit rating by S&P and by
Moody’s with respect to the Loans hereunder and (y) a corporate family rating
by Moody’s and a corporate rating by S&P, in each case of the Borrower.

Section 5.16.  Permitted Subordinated Debt. The
Borrower will cause the Obligations to at all times constitute “Senior Debt”
for all purposes of the Permitted Subordinated Debt and any indenture or other
definitive documentation relating thereto. The Obligations under the Loan
Documents are hereby designated as “Designated Senior Debt” and the Borrower
will cause such Obligations to at all times constitute “Designated Senior Debt”
for all purposes of the Permitted Subordinated Debt and any indenture or other
definitive documentation relating thereto. The Borrower will not permit any
other Debt or obligations (other than the Obligations under the Loan Documents)
to constitute “Designated Senior Debt” for any purposes of the Permitted
Subordinated Debt or any indenture or other definitive documentation relating
thereto.

ARTICLE
6

NEGATIVE COVENANTS

Until
all the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full,
the Borrower covenants and agrees with the Lenders that:

Section 6.01.  Debt;
Certain Equity Securities. 
(a) Neither the Borrower nor any Subsidiary will create, incur, assume
or permit to exist any Debt, except:

 59
 

 

 

(i)            Debt created under the Loan
Documents;

(ii)           Debt existing on the date hereof and
listed in Schedule 6.01 and extensions, renewals and replacements of any such
Debt on terms that are not materially more restrictive to the Borrower or such
Subsidiary and that do not increase the outstanding principal amount thereof or
result in an earlier maturity date or decreased weighted average life thereof;

(iii)          Debt of the Borrower to any Subsidiary
and Debt of any Subsidiary to the Borrower or any other Subsidiary; provided that Debt of any Subsidiary that
is not a Credit Party to a Credit Party shall be subject to Section 6.04;

(iv)          Guarantees by the Borrower of Debt of
any Subsidiary and Guarantees by any Subsidiary of Debt of the Borrower or any
other Subsidiary; provided that
Guarantees by a Credit Party of Debt of any Subsidiary that is not a Credit
Party shall be subject to Section 6.04;

(v)           Debt in respect of letters of credit
supporting payments obligations incurred in the ordinary course of business by
the Borrower or any Subsidiary;

(vi)          Debt of the Borrower or any Subsidiary
incurred to finance the acquisition, construction or improvement of any fixed
or capital assets, including Capital Lease Obligations and any Debt assumed in
connection with the acquisition of any such assets or secured by a Lien on any
such assets before the acquisition thereof, and extensions, renewals and
replacements of any such Debt on terms that are not materially more restrictive
to the Borrower or such Subsidiary and that do not increase the outstanding
principal amount thereof or result in an earlier maturity date or decreased
weighted average life thereof; provided
that (A) such Debt is incurred before or within 90 days after such acquisition
or the completion of such construction or improvement and (B) the aggregate
principal amount of Debt permitted by this clause shall not exceed $75,000,000
at any time outstanding;

(vii)         Permitted Subordinated Debt; provided that (A) at the time of, and after giving effect
to, the incurrence of such Debt, no Default shall have occurred and be
continuing, (B) the ratio of Consolidated EBITDA to Consolidated Interest
Expense (calculated on a Pro Forma Basis for the most recently completed period
of four consecutive Fiscal Quarters) shall be equal to or greater than 5.0:1.0,
and (C) the Net Proceeds of such Debt are applied in accordance with Section
2.09;

 60
 

 

 

(viii)        Debt under performance bonds, surety,
appeal or similar bonds, or with respect to workers compensation or other like
employee benefit claims, in each case incurred in the ordinary course of
business; and

(ix)           other unsecured Debt in an aggregate
principal amount not exceeding $25,000,000 at any time outstanding.

(b)        No Marvell Company will issue any
preferred stock or other preferred Equity Interests.

Section 6.02.  Liens.  Neither the Borrower nor any Subsidiary will
create or permit to exist any Lien on any property now owned or hereafter
acquired by it, or assign or sell any income or revenues (including accounts
receivable) or rights in respect of any thereof, except:

(i)            Transaction Liens;

(ii)           Permitted Liens;

(iii)          any Lien on any property of the
Borrower or any Subsidiary existing on the date hereof and listed in Schedule
6.02; provided that (A) such Lien
shall not apply to any other property of the Borrower or any Subsidiary and (B)
such Lien shall secure only those obligations which it secures on the date
hereof, and extensions, renewals and replacements thereof that do not increase
the outstanding principal amount thereof;

(iv)          Liens on fixed or capital assets
acquired, constructed or improved by the Borrower or any Subsidiary; provided that (A) the Debt secured by such
liens is permitted by Section 6.01(a)(vi), (B) such Liens and the Debt secured
thereby are incurred before or within 90 days after such acquisition or the
completion of such construction or improvement, (C) the Debt secured thereby
does not exceed the cost of acquiring, constructing or improving such fixed or
capital assets and (D) such Liens will not apply to any other property of the
Borrower or any Subsidiary;

(v)           any Lien existing on any property before
the acquisition thereof by the Borrower or any Subsidiary or existing on any
property of any Person that becomes a Subsidiary after the date hereof before
the time such Person becomes a Subsidiary; provided that
(A) such Lien is not created in contemplation of or in connection with such
acquisition or such Person becoming a Subsidiary, as the case may be, (B) such
Lien will not apply to any other property of the Borrower or any Subsidiary and
(C)  such Lien will secure only those
obligations which it secures on the date

 61
 

 

 

of such acquisition or
the date such Person becomes a Subsidiary, as the case may be, and extensions,
renewals and replacements thereof on terms that are not materially more
restrictive to the Borrower or such Subsidiary and that do not increase the
outstanding principal amount thereof;

(vi)          Liens on cash deposits in an aggregate
amount not exceeding $75,000,000 at any time securing Debt permitted by Section
6.01(a)(v); and

(vii)         other Liens securing Debt or other
obligations outstanding in an aggregate principal amount not in excess of
$10,000,000.

Section 6.03.  Fundamental
Changes.  (a) No Marvell
Company will merge into or consolidate with any other Person, or liquidate or
dissolve, or permit any other Person to merge into or consolidate with it,
except that, if at the time thereof and immediately after giving effect thereto
no Default shall have occurred and be continuing, (i) any Person may merge into
the Borrower in a transaction in which the Borrower is the surviving
corporation, (ii) any Person (other than the Borrower) may merge into any
Subsidiary in a transaction in which the surviving entity is a Subsidiary and
(if any party to such merger is a Guarantor) is a Guarantor and (iii) any
Subsidiary (except a Guarantor) may liquidate or dissolve if the Borrower
determines in good faith that such liquidation or dissolution is in the best
interests of the Borrower and is not materially disadvantageous to the Lenders;
provided that, if any such merger
or consolidation involves a Person that is not a wholly owned Subsidiary
immediately before such merger or consolidation, such transaction shall not be
permitted unless also permitted by Section 6.04.

(b)        Neither the Borrower nor any Subsidiary
will engage to any material extent in any business except businesses of the
types conducted by the Borrower on the date of this Agreement (after giving
effect to the Acquisition) and businesses reasonably related thereto.

Section 6.04.  Investments,
Loans, Advances, Guarantees and Acquisitions.  Neither the Borrower nor any Subsidiary will
make, hold or acquire any Investment in any Person or make any Business
Acquisition, except:

(a)        the Acquisition;

(b)        Permitted Investments;

(c)        investments existing on the date hereof
and listed on Schedule 6.04;

(d)        investments by the Borrower and its
Subsidiaries in Equity Interests in their respective Subsidiaries; provided that (i) any such Equity Interest
held by

 62
 

 

 

a Credit Party shall be pledged pursuant to a Pledge
Agreement to the extent required to satisfy the Minimum Stock Collateral
Condition and (ii) the aggregate amount of investments by Credit Parties in,
and loans and advances by Credit Parties to, and Guarantees by Credit Parties
of Debt of, Subsidiaries that are not Credit Parties made after the Closing
Date shall not exceed $50,000,000 at any time outstanding;

(e)        loans or advances made by the Borrower
to any Subsidiary or made by any Subsidiary to the Borrower or any other
Subsidiary; provided that the
amount of such loans and advances made by Credit Parties to Subsidiaries that
are not Credit Parties shall be subject to the limitation set forth in clause
6.04(d) above;

(f)         Guarantees constituting Debt permitted
by Section 6.01; provided that
the aggregate principal amount of Debt of Subsidiaries that are not Credit
Parties that is Guaranteed by Credit Parties shall be subject to the limitation
set forth in clause 6.04(d) above;

(g)        Business Acquisitions; provided that (i) at the time of, and
after giving effect to, each such Business Acquisition, no Default shall have
occurred and be continuing, (ii) the aggregate consideration for Business
Acquisitions made during any Fiscal Year shall not exceed $100,000,000 (except
to the extent the consideration thereof consists of Qualified Equity Interests
of the Borrower), (iii) after giving effect to each such Business Acquisition,
the Borrower shall be in Pro Forma Compliance and (iv) after giving effect to
each such Business Acquisition, the Credit Parties shall have at least
$250,000,000 of unrestricted cash and other Permitted Investments;

(h)        loans or advances made to employees of
any Marvell Company in the ordinary course of business in an aggregate amount
not to exceed $15,000,000 at any time outstanding (determined without reference
to any write-downs or write-offs thereof);

(i)         investments received in connection with
the bankruptcy or reorganization of, or settlement of delinquent accounts and
disputes with, customers and suppliers, in each case in the ordinary course of
business;

(j)         Hedging Agreements permitted under
Section 6.07; and

(k)        other Investments not exceeding
$30,000,000 in the aggregate during the term of this Agreement.

Section 6.05.  Asset
Sales.  (a) Neither the
Borrower nor any Subsidiary will sell, transfer, lease or otherwise dispose of
any property, including any

 63
 

 

 

Equity Interest owned by
it, nor will any Subsidiary issue any additional Equity Interest in such
Subsidiary, except:

(i)            sales of inventory, used or surplus
equipment and Permitted Investments in the ordinary course of business;

(ii)           sales, transfers and other
dispositions to the Borrower or a Subsidiary; provided
that any such sales, transfers or dispositions involving a Subsidiary that is
not a Credit Party shall comply with Section 6.09;

(iii)          licenses, cross-licenses or sublicenses
of software, trademarks and other intellectual property in the ordinary course
of business and consistent with past practices and which do not materially
interfere with the business of the Marvell Companies, taken as a whole; and

(iv)          sales, transfers and other
dispositions of assets (except Equity Interests in a Subsidiary) that are not
permitted by any other clause of this Section; provided
that the aggregate book value of all assets sold, transferred or otherwise
disposed of in reliance on this clause during any Fiscal Year shall not exceed
an amount equal to 10% of the total assets of the Borrower and its Subsidiaries
determined on a consolidated basis in accordance with GAAP as at the end of the
most recently completed Fiscal Quarter for which financial statements have been
delivered to the Administrative Agent;

provided that all
sales, transfers, leases and other dispositions permitted by this Section
(except those permitted by clause (ii) above) shall be made for fair market
value (as determined in good faith by the Borrower or such Subsidiary (which
determination, if the sale price or other consideration exceeds $100,000,000
for a transaction or a series of related transactions, shall be evidenced by a
certificate from a Financial Officer)) and for at least 90% cash consideration;
provided further that the foregoing
shall not prohibit (x) the Borrower from issuing Qualified Equity Interests or
(y) any exchange of assets by any Marvell Company for similar assets of
comparable market value (as determined in good faith by such Marvell Company
(which determination, if the market value exceeds $100,000,000 for a
transaction or a series of related transactions, shall be evidenced by a
certificate from a Financial Officer)) in the ordinary course of business and
consistent with past practices and so long as the assets acquired pursuant to
such exchange will be included in the Collateral at least to the extent that
the assets disposed of were included therein.

(b)   Notwithstanding the foregoing, prior to the
Trigger Date and at any time during which the Security Agreement or a Mortgage
is required to be in

 64
 

 

 

effect to satisfy Section 5.12(d), (i) no Domestic
Subsidiary will sell, transfer, lease or otherwise dispose of any assets of the
type described in Section 2 of the Form of Security Agreement attached hereto
as Exhibit G or any Mortgaged Property, except for sales permitted by Section
6.05(a)(i) and (ii) the Borrower shall not permit any sale or other disposition
of any Equity Interests in any Domestic Subsidiary and shall not permit any
Domestic Subsidiary to effect any transaction (including any merger or
consolidation), if such sale, disposition or transaction directly or indirectly
results in such Domestic Subsidiary ceasing to be a Domestic Subsidiary.

Section 6.06.  Sale and
Leaseback Transactions. 
Neither the Borrower nor any Subsidiary will enter into any arrangement,
directly or indirectly, whereby it shall sell or transfer any property, real or
personal, used or useful in its business, whether now owned or hereafter
acquired, and thereafter rent or lease such property or other property that it
intends to use for substantially the same purpose or purposes as the property
sold or transferred, except for any such sale of any fixed or capital asset
that is made for cash consideration in an amount not less than the cost of such
fixed or capital asset and is consummated within 90 days after such Marvell
Company acquires or completes the construction of such fixed or capital asset.

Section 6.07.  Hedging
Agreements.  Neither the
Borrower nor any Subsidiary will enter into any Hedging Agreement, except
Hedging Agreements entered into in the ordinary course of business to hedge or
mitigate risks to which a Marvell Company is exposed in the conduct of its
business or the management of its liabilities and not for speculative purposes.

Section 6.08.  Restricted
Payments; Certain Payments of Debt. 
(a) No Marvell Company will declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except that (i) the Borrower may declare
and pay dividends with respect to its capital stock payable solely in
additional shares of its common stock, (ii) any Subsidiary may declare and pay
dividends with respect to its capital stock, (iii) the Borrower may declare or
make Restricted Payments if at the time of, and after giving effect thereto, no
Default shall have occurred and be continuing and the aggregate amount expended
for all Restricted Payments made pursuant to this clause (iii) during any
Fiscal Year would not exceed an amount equal to 15% of Consolidated Net Income
calculated for the immediately preceding Fiscal Year and (iv) the Borrower may
declare or make Restricted Payments if at the time of, and after giving effect
thereto, no Default shall have occurred and be continuing and the aggregate
amount expended for all Restricted Payments made pursuant to this clause (iv)
shall not at any time exceed the aggregate amount of net cash proceeds received
by the Borrower after the Closing Date from the exercise of any stock options
or warrants with respect to the Borrower’s common stock.

 65
 

 

 

(b)        No Marvell Company will make or agree to
pay or make, directly or indirectly, any payment or other distribution (whether
in cash, securities or other property) of or in respect of principal of or
interest on any Debt, or any payment or other distribution (whether in cash,
securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, defeasance or termination of any Debt,
except:

(i)            payment of Debt created under the
Loan Documents;

(ii)           payment of regularly scheduled
interest and principal payments as and when due in respect of any Debt, except
payments in respect of the Permitted Subordinated Debt prohibited by the
subordination provisions thereof;

(iii)          prepayments in connection with
refinancings of Debt to the extent permitted by Section 6.01; and

(iv)          payment of secured Debt that becomes
due as a result of the voluntary sale or transfer of the property securing such
Debt.

Section 6.09.  Transactions
with Affiliates.  No Marvell
Company will sell, lease or otherwise transfer any property to, or purchase,
lease or otherwise acquire any property from, or otherwise engage in any other
transaction with, any of its Affiliates, except (a) transactions in the
ordinary course of business that are at prices and on terms and conditions not
less favorable to such Marvell Company than could be obtained on an arm’s-length
basis from unrelated third parties, (b) transactions between or among the
Credit Parties not involving any other Affiliate, (c) reasonable and customary
fees paid to members of the Board of Directors of the Borrower, (d) any
Restricted Payment permitted by Section 6.08 and (e) transactions between or
among Marvell Companies not involving any Credit Party.

Section 6.10.  Restrictive
Agreements.  (a) No Marvell
Company will, directly or indirectly, enter into any agreement or other
arrangement that prohibits, restricts or imposes any condition on (i) the
ability of any Marvell Company to create or permit to exist any Lien on any of
its property or (ii) the ability of any Subsidiary to pay dividends or other
distributions with respect to any shares of its capital stock or to make or
repay loans or advances to the Borrower or any other Subsidiary or to Guarantee
Debt of the Borrower or any other Subsidiary; provided
that (1) the foregoing shall not apply to restrictions and conditions imposed
by any Loan Document, (2) the foregoing shall not apply to restrictions and
conditions existing on the date hereof and identified on Schedule 6.10 (but
shall apply to any amendment or modification expanding the scope of any such
restriction or condition), (3) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a

 66
 

 

 

Subsidiary pending such
sale, provided that such
restrictions and conditions apply only to the Subsidiary that is to be sold and
such sale is permitted hereunder, (4) the foregoing shall not apply to
customary provisions in any agreement, indenture or other instrument relating
to Debt permitted under Section 6.01 so long as such provisions are consistent
with customary market terms for Debt similar to such permitted Debt and are no
more restrictive than those set forth herein, (5) clause (i) of this Section
shall not apply to restrictions or conditions imposed by any agreement relating
to secured Debt permitted by this Agreement if such restrictions or conditions
apply only to the property securing such Debt and (6) clause (i) of this
Section shall not apply to customary provisions in leases restricting the
assignment thereof.

(b)        Without limiting the foregoing, no
Marvell Company will, directly or indirectly, enter into any agreement or other
arrangement that prohibits, restricts or imposes any condition on the ability
of any Marvell Company to satisfy the requirements of Section 5.12 or Section
5.13 at any time that such provisions are required to be satisfied.

Section 6.11.  Amendment
of Material Documents.  No
Marvell Company will amend, modify or waive any of its rights under (a) any
indenture or other agreement relating to any Permitted Subordinated Debt, (b)
its certificate of incorporation, by-laws or other organizational documents,
(c) any Acquisition Documentation or (d) any other agreement material to the
operation of its business, if in each case such amendment, modification or
waiver could reasonably be expected to result in a Material Adverse Effect.

Section 6.12.  Change in
Fiscal Year.  The Borrower
shall not change the end of its fiscal year from the Saturday closest to
January 31.

Section 6.13.  Debt to
Total Capitalization.  The
Borrower will not at any time permit the ratio of Total Debt to Total
Capitalization to exceed 0.3:1.0.

Section 6.14.  Fixed
Charge Coverage Ratio.  The
Borrower will not permit the ratio of (a) Consolidated EBITDA to (b)
Consolidated Fixed Charges, in each case for any period of four consecutive
Fiscal Quarters ending on the last day of any Fiscal Quarter to be less than
1.2:1.0.

ARTICLE
7

EVENTS OF DEFAULT

If
any of the following events (“Events of
Default”) shall occur:

 67
 

 

 

(a)        the Borrower shall fail to pay any
principal of any Loan when the same shall become due, whether at the due date
thereof or at a date fixed for prepayment thereof or otherwise;

(b)         the Borrower shall fail to pay when due
any interest on any Loan or any fee or other amount (except an amount referred
to in clause (a) above) payable under any Loan Document, and such failure shall
continue unremedied for a period of five Business Days;

(c)        any representation, warranty or
certification made or deemed made by or on behalf of any Marvell Company in or
in connection with any Loan Document or any amendment or modification thereof
or waiver thereunder, or in any report, certificate, financial statement or
other document furnished pursuant to or in connection with any Loan Document or
any amendment or modification thereof or waiver thereunder, shall prove to have
been incorrect in any material respect when made or deemed made;

(d)        the Borrower shall fail to observe or
perform any covenant or agreement contained in Section 5.02, 5.04 (with respect
to the existence of any Credit Party), 5.11, 5.12, 5.13 or 5.16 or in Article
6;

(e)        any Credit Party shall fail to observe
or perform any covenant or agreement contained in any Loan Document (other than
those specified in clause (a), (b) or (d) above), and such failure shall
continue unremedied for a period of  30
days after notice thereof from the Administrative Agent to the Borrower (which
notice will be given at the request of any Lender);

(f)         any Marvell Company shall fail to make
a payment or payments (whether of principal or interest and regardless of
amount) in respect of Material Debt when the same shall become due, whether at
the due date thereof or at a date fixed for prepayment thereof or otherwise;

(g)        any event or condition occurs that
results in Material Debt becoming due before its scheduled maturity or that
enables or permits (with or without the giving of notice, the lapse of time or
both) the holder or holders of Material Debt or any trustee or agent on its or
their behalf to cause Material Debt to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, before its scheduled maturity; provided that this clause shall not apply
to secured Debt that becomes due as a result of a voluntary sale or transfer of
the property securing such Debt;

(h)        an involuntary proceeding shall be
commenced or an involuntary petition shall be filed seeking (i) liquidation,
reorganization, winding up or other relief in respect of any Marvell Company or
its debts, or of a substantial part of its assets, under any Federal, state or
foreign bankruptcy, insolvency, receivership or

 68
 

 

 

similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator,
judicial manager, administrator or similar official for any Marvell Company or
for a substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for 60 days or an order or decree approving
or ordering any of the foregoing shall be entered;

(i)         any Marvell Company shall (i)
voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization, winding up or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (h) above,
(iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator, judicial manager, administrator or
similar official for any Marvell Company or for a substantial part of its
assets, (iv) file an answer admitting the material allegations of a petition
filed against it in any such proceeding, (v) make a general assignment for the
benefit of creditors or (vi) take any action for the purpose of effecting any
of the foregoing;

(j)         any Marvell Company shall become
unable, admit in writing its inability or fail generally to pay its debts as
they become due;

(k)        one or more judgments for the payment of
money in an aggregate amount exceeding $25,000,000 (to the extent not covered
by independent third-party insurance as to which the insurer has not denied or
disputed its obligations to cover such judgment) shall be rendered against one
or more Marvell Companies and shall remain undischarged for a period of 30
consecutive days during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to attach or levy upon any
asset of any Marvell Company to enforce any such judgment;

(l)         an ERISA Event shall have occurred
that, in the opinion of the Required Lenders, when taken together with all
other ERISA Events that have occurred, could reasonably be expected to result
in liability of the Borrower and its Subsidiaries in an aggregate amount
exceeding $25,000,000;

(m)       any Lien purported to be created under
any Security Document shall cease to be, or shall be asserted by any Credit
Party not to be, a valid and perfected Lien on any Collateral, with the
perfection and priority required by the applicable Security Document, except
(i) as a result of a sale or other disposition of the applicable Collateral in
a transaction permitted under the Loan Documents or (ii) as a result of the
Administrative Agent’s failure to maintain possession of any stock
certificates, promissory notes or other documents delivered to it under the
Security Documents;

 69

 

 

(n)        a Change in Control shall occur;

(o)        any Guarantor’s Transaction Guarantee
shall at any time fail to constitute a valid and binding agreement of such
Guarantor or any party shall so assert in writing, unless (i) the Minimum
Guarantee Condition remains satisfied without such Transaction Guarantee and
(ii) the total assets of the Guarantors whose Transaction Guarantees cease to
be valid and binding during the term of this Agreement does not exceed 2% of
the consolidated assets of the Borrower and its Subsidiaries as at the end of
the most recently completed Fiscal Quarter for which financial statements have
been delivered to the Administrative Agent.

(p)        any restriction or requirement shall be
imposed, promulgated or amended by any Governmental Authority in Bermuda,
Singapore or other relevant jurisdiction on or after the date hereof that
restricts, limits or prohibits the acquisition or the transfer of foreign
exchange by the Borrower and that impair or could reasonably be expected to
impair in any material respect the Credit Parties’ ability to perform their
respective obligations under the Loan Documents in accordance with the terms
thereof (including, without limitation, in dollars), unless such restrictions
or requirements, in the aggregate, are limited to Guarantors the total assets
of which do not exceed 2% of the consolidated assets of the Borrower and its
Subsidiaries as at the end of the most recently completed Fiscal Quarter for
which financial statements have been delivered to the Administrative Agent; or

(q)        (i) any Governmental Authority in
Bermuda, Singapore or other relevant jurisdiction shall take any action,
including a moratorium, having an effect on the schedule of payments of any
Credit Party under any Loan Document, (ii) any Credit Party shall, voluntarily
or involuntarily, participate or take any action to participate in any facility
or exercise involving the rescheduling of such Credit Party’s debts or the
restructuring of the currency in which such Credit Party may pay its obligations,
unless, the circumstances in clause (i) and (ii), in the aggregate, are limited
to Guarantors the total assets of which do not exceed 2% of the consolidated
assets of the Borrower and its Subsidiaries as at the end of the most recently
completed Fiscal Quarter for which financial statements have been delivered to
the Administrative Agent or (iii) any Governmental Authority in Bermuda,
Singapore or other relevant jurisdiction shall nationalize, expropriate, seize
or otherwise compulsorily acquire all or any substantial part of the assets of
the Borrower and its Subsidiaries, taken as a whole;

then, and in every such event (except an event with
respect to the Borrower described in clause (h) or (i) above), and at any time
thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to the Borrower,
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may
thereafter be declared to be

 70
 

 

 

due and payable), and thereupon the principal of the
Loans so declared to be due and payable, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued hereunder, shall
become due and payable immediately, without presentment, demand, protest or
other notice of any kind, all of which are waived by the Borrower; and in the
case of any event with respect to the Borrower described in clause (h) or (i)
above, the principal of the Loans then outstanding, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are waived by the
Borrower.

ARTICLE 8

THE ADMINISTRATIVE AGENT

Section 8.01.  Appointment and Authorization.  Each Lender Party irrevocably
appoints the Administrative Agent as its agent and authorizes the
Administrative Agent (i) to sign and deliver the Guarantee Agreement and the
Security Documents and (ii) to take such actions on its behalf and to exercise
such powers as are delegated to the Administrative Agent by the terms of the
Loan Documents, together with such actions and powers as are reasonably incidental
thereto.

Section 8.02.  Rights and Powers as a Lender.  A bank serving as the
Administrative Agent shall, in its capacity as a Lender, have the same rights
and powers as any other Lender and may exercise the same as though it were not
the Administrative Agent.  Such bank and
its Affiliates may accept deposits from, lend money to and generally engage in
any kind of business with any Marvell Company or Affiliate thereof as if it
were not the Administrative Agent.

Section 8.03.  Limited Duties and Responsibilities.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth in the Loan
Documents.  Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated by the Loan
Documents that the Administrative Agent is required in writing to exercise by
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 9.02) and (c)
except as expressly set forth in the Loan Documents, the Administrative Agent
shall not have any duty to disclose, and shall not be liable for any failure to
disclose, any information relating to any Marvell Company that is communicated
to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity.  The
Administrative

 71
 

 

 

Agent shall not be liable for any action taken or not
taken by it with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02) or in the absence of its own gross
negligence or willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by the
Borrower or a Lender, and the Administrative Agent shall not be responsible for
or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered thereunder or
in connection therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of
any Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article 4 or elsewhere in any Loan
Document, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

Section 8.04.  Authority to Rely on Certain Writings, Statements and
Advice.  The Administrative
Agent shall be entitled to rely on, and shall not incur any liability for
relying on, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed
or sent by the proper Person.  The
Administrative Agent also may rely on any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. 
The Administrative Agent may consult with legal counsel (who may be
counsel for any Marvell Company), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

Section 8.05.  Sub-Agents and Related Parties.  The Administrative Agent may perform any and
all its duties and exercise its rights and powers by or through one or more
sub-agents appointed by it.  The
Administrative Agent and any such sub-agent may perform any and all its duties
and exercise its rights and powers through their respective Related
Parties.  The exculpatory provisions of
the preceding Sections of this Article shall apply to any such sub-agent and to
the Related Parties of the Administrative Agent and any such sub-agent, and
shall apply to activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

Section 8.06.  Resignation; Successor Administrative Agent.  Subject to the appointment and acceptance of
a successor Administrative Agent as provided in this Section, the
Administrative Agent may resign at any time by notifying the Lenders and the
Borrower.  Upon any such resignation, the
Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor.  If

 72
 

 

 

no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent which shall be a bank with an office in New
York, New York, or an Affiliate of any such bank.  Upon acceptance of its appointment as
Administrative Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder.  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed by the Borrower and such successor.  After the Administrative Agent’s resignation
hereunder, the provisions of this Article and Section 9.03 shall continue in
effect for the benefit of such retiring Administrative Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while the retiring Administrative Agent was acting
as Administrative Agent.

Section 8.07.  Credit Decisions by Lenders.  Each Lender acknowledges that it has,
independently and entirely without reliance on the Administrative Agent or any
other Lender, made its own credit analysis and decision to enter into this
Agreement.  Each Lender further
acknowledges that it has made its credit analysis and decision based entirely
on documents and information provided by the Borrower as requested and deemed
appropriate by such Lender and has not relied upon any document provided by the
Administrative Agent or any other Lender. Each Lender also acknowledges that it
will, independently and entirely without reliance on the Administrative Agent
or any other Lender and based on such documents and information as it shall
from time to time deem appropriate to request from the Borrower, continue to
make its own decisions in taking or not taking action under or based on this
Agreement, any other Loan Document or related agreement or any document
furnished hereunder or thereunder.

Section 8.08.  Other Agents and Arranger.  No Agent other than the Administrative Agent
and no Arranger shall have any responsibility, obligation or liability
whatsoever under the Loan Documents in such capacity.

ARTICLE 9

MISCELLANEOUS

Section 9.01.  Notices. 
(a)  Except in the case of notices
and other communications expressly permitted to be given by telephone, all
notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by facsimile, as follows:

 73
 

 

 

(i)            if
to the Borrower, to it at Marvell Technology Group Ltd., c/o Marvell
Semiconductor, Inc., 5488 Marvell Lane, Santa Clara, CA 95054, Attention of
Chief Financial Officer (facsimile no. 408 832 4309);

(ii)           if
to the Administrative Agent, to Credit Suisse, Cayman Islands Branch, at Eleven
Madison Avenue, New York, New York 10010, Attention of Thomas Lynch (facsimile
no. 212 325 8304; email: thomas.lynch@credit-suisse.com); and

(iii)          if
to any Lender, to it at its address (or facsimile number) set forth in its
Administrative Questionnaire.

(b)        Notices and other communications to the
Lenders hereunder may be delivered or furnished by electronic communications
pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article 2 unless otherwise agreed by the
Administrative Agent and the applicable Lender. 
The Administrative Agent or the Borrower may, in its discretion, agree
to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such procedures
may be limited to particular notices or communications.

(c)        Any party hereto may change its address
or facsimile number for notices and other communications hereunder by notice to
the Administrative Agent and the Borrower. 
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement will be deemed to have been given on the
date of receipt; provided that if
a notice or other communication is received after normal business hours of the
recipient or on a day that is not a business day of the recipient, such notice
or communication shall be deemed to have been given on the next business day of
the recipient.

Section 9.02.  Waivers; Amendments.  (a) No failure or delay by any Lender Party
in exercising any right or power hereunder or under any other Loan Document
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. 
The rights and remedies of the Lender Parties under the Loan Documents
are cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any
provision of any Loan Document or consent to any departure by any Credit Party
therefrom shall in any event be effective unless the same shall be permitted by
subsection (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the
foregoing, the making of a Loan shall not be

 74
 

 

 

construed as a waiver of any Default, regardless of
whether any Lender Party had notice or knowledge of such Default at the time.

(b)        No Loan Document or provision thereof
may be waived, amended or modified except, in the case of this Agreement, by an
agreement or agreements in writing entered into by the Borrower and the
Required Lenders or, in the case of any other Loan Document, by an agreement or
agreements in writing entered into by the parties thereto with the consent of
the Required Lenders; provided
that no such agreement shall:

(i)            increase
the Commitment of any Lender without its written consent;

(ii)           reduce
the principal amount of any Loan or reduce the rate of interest thereon, or
reduce any fee payable hereunder, without the written consent of each Lender
Party affected thereby;

(iii)          postpone
the maturity of any Loan, or any scheduled date of payment of the principal
amount of any Loan under Section 2.08(a), or any date for the payment of any
interest or fee payable hereunder, or reduce the amount of, waive or excuse any
such payment, or postpone the scheduled date of expiration of any Commitment,
without the written consent of each Lender Party affected thereby;

(iv)          change
Section 2.17(b) or 2.17(c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender;

(v)           change
any provision of this Section or the percentage set forth in the definition of
“Required Lenders” or any other provision of any Loan Document specifying the
number or percentage of Lenders required to take any action thereunder, without
the written consent of each Lender;

(vi)          release
all or substantially all of the value of the Transaction Guarantees, without
the written consent of each Lender; or

(vii)         release
all or substantially all of the Collateral from the Transaction Liens (except
as expressly provided in the Security Documents), without the written consent
of each Lender; or

provided further
that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent without its prior written consent.

(c)   Notwithstanding the foregoing, if the
Required Lenders enter into or consent to any waiver, amendment or modification
pursuant to subsection (b) of this Section, no consent of any other Lender will
be required if, when such

 75
 

 

 

waiver, amendment or modification becomes effective,
(i) the Commitment of each Lender not consenting thereto terminates and (ii)
all amounts owing to it or accrued for its account hereunder are paid in full.

Section 9.03.  Expenses; Indemnity; Damage Waiver.  (a) The Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates, including the reasonable fees, charges and disbursements of  counsel for the Administrative Agent, in
connection with the syndication of the credit facilities provided for herein,
the preparation and administration of the Loan Documents and any amendments,
modifications or waivers of the provisions thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), and (ii) all
out-of-pocket expenses incurred by any Lender Party, including the fees,
charges and disbursements of any counsel for any Lender Party, in connection
with the enforcement or protection of its rights in connection with the Loan
Documents (including its rights under this Section) or the Loans, including all
such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of the Loans (including the amount of any taxes
(including transfer taxes, stamp taxes and similar taxes) that the
Administrative Agent may have been required to pay by reason of the Transaction
Liens or the enforcement thereof or to free any Collateral from any other Lien
thereon and expenses incurred to preserve the value of the Collateral or the
validity, perfection, rank or value of any Transaction Lien or the collection,
sale or other disposition of any Collateral).

(b)        The Borrower shall indemnify each of the
Lender Parties and their respective Related Parties (each such Person being
called an “Indemnitee”) against,
and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the reasonable fees, charges and
disbursements of counsel for any Indemnitee, incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of any actual
or prospective claim, litigation, investigation or proceeding relating to (i)
the execution or delivery of any Loan Document or any other agreement or
instrument contemplated hereby, the performance by the parties to the Loan
Documents of their respective obligations thereunder or the consummation of the
Transactions or any other transactions contemplated hereby, (ii) any Loan or
the use of the proceeds therefrom or (iii) any actual or alleged presence or
release of Hazardous Materials on or from any Mortgaged Property or any other
property currently or formerly owned or operated by the Borrower or any
Subsidiary, or any Environmental Liability related in any way to the Borrower
or any Subsidiary, regardless of whether such claim, litigation, investigation
or proceeding is based on contract, tort or any other theory and regardless of
whether any Indemnitee is a party thereto or whether commenced by a Marvell
Company or any of its Affiliates; provided
that such indemnity shall not be available to any Indemnitee to the extent that
such losses, claims, damages, liabilities or related

 76
 

 

 

expenses are determined by the judgment of a court of
competent jurisdiction to have resulted from such Indemnitee’s gross negligence
or willful misconduct.

(c)        To the extent that the Borrower fails to
pay any amount required to be paid by it to the Administrative Agent under
subsection (a) or (b) of this Section, each Lender severally agrees to pay to
the Administrative Agent such Lender’s pro rata share (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought)
of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent in its capacity as such. 
For purposes hereof, a Lender’s “pro
rata share” shall be determined based on its share of the
outstanding Loans at the time.

(d)        To the extent permitted by applicable
law, the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the Transactions, any Loan or the use of the
proceeds thereof.

(e)        All amounts due under this Section shall
be payable within 10 Business Days after written demand therefor.

Section 9.04.  Successors and Assigns.  (a) The provisions of this Agreement shall be
binding on and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that (i) the Borrower may not
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii)
no Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section. 
Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (except the parties hereto, their respective successors
and assigns permitted hereby and, to the extent expressly provided herein, the
Related Parties of the Lender Parties) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

(b)        Any Lender may assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of any Commitment it has at the time and any Loans
at the time owing to it), which assignment shall operate as a ratable
assignment of such Lender’s rights and obligations under the Loan Documents; provided that:

(i)            the
Administrative Agent must give prior written consent to any such assignment
(which consent shall not be unreasonably withheld);

 77
 

 

 

(ii)           the
Administrative Agent shall use its reasonable best efforts to notify the
Borrower of any such assignment; provided that
any failure to provide or any delay in providing such notice shall not affect
the validity of such assignment;

(iii)          unless
the Administrative Agent otherwise consents, the amount of the Commitment or
Loans of the assigning Lender subject to each such assignment (determined as of
the date on which the relevant Assignment is delivered to the Administrative
Agent) shall not be less than $1,000,000; provided
that this clause (iii) shall not apply to an assignment to a Lender or a Lender
Affiliate or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans; provided further
that simultaneous assignments to or by two or more Approved Funds shall be
combined for purposes of determining whether the minimum assignment amount is
met;

(iv)          the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment via an electronic settlement system acceptable to the
Administrative Agent (or, if previously agreed with the Administrative Agent,
manually), together with a processing and recordation fee of $3,500 (which fee
may be waived or reduced in the sole discretion of the Administrative Agent);
and

(v)           the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent (1) a completed Administrative Questionnaire in which the assignee designates
one or more credit contacts to whom all syndicate-level information (which may
contain material non-public information about the Borrower, the Credit Parties
and the other Marvell Companies and their related parties or their respective
securities) will be made available and who may receive such information in
accordance with the assignee’s compliance procedures and applicable laws,
including Federal and state securities laws and (2) if applicable, any
documentation required under Section 2.16(e).

For the purposes of this
Section 9.04(b), the term “Approved Fund”
has the following meaning:

“Approved Fund” means any Person (other than
a natural person) that is engaged in making, purchasing, holding or investing
in bank loans and similar extensions of credit in the ordinary course of its
business and that is administered or managed by (a) a Lender, (b) a Lender
Affiliate or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

Subject to acceptance and recording thereof pursuant
to subsection (d) of this Section, from and after the effective date specified
in each Assignment the

 78
 

 

 

assignee thereunder shall be a party hereto and, to
the extent of the interest assigned by such Assignment, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment, be
released from its obligations under this Agreement (and, in the case of an
Assignment covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.14, 2.15, 2.16 and 9.03).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
subsection (e) of this Section.

(c)   The Administrative Agent, acting for this
purpose as an agent of the Borrower, shall maintain at one of its offices in
New York City a copy of each Assignment delivered to it and a register for the
recordation of the names and addresses of the Lenders, their respective
Commitments and the principal amounts of the Loans owing to each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries
in the Register shall be conclusive, and the parties hereto may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender for all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be
available for inspection by any party hereto at any reasonable time and from
time to time upon reasonable prior notice.

(d)   Upon its receipt of a duly completed
Assignment executed by an assigning Lender and an assignee and the assignee’s
completed Administrative Questionnaire and, if applicable, any documentation
required under Section 2.16(e) (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in subsection (b) of
this Section and any written consent to such assignment required by subsection
(b) of this Section, the Administrative Agent shall promptly accept such
Assignment and record the information contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this subsection.

(e)   Any Lender may, without the consent of the
Borrower or any other Lender Party, sell participations to one or more banks or
other entities (“Participants”) in
all or a portion of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Commitments and the Loans owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower and the other Lender Parties shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this

 79
 

 

 

Agreement.  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce the Loan
Documents and to approve any amendment, modification or waiver of any provision
of the Loan Documents; provided
that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such
Participant.  Subject to subsection (f)
of this Section, each Participant shall be entitled to the benefits of Sections
2.14, 2.15 and 2.16 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.08 as though it
were a Lender, provided that such
Participant agrees to be subject to Section 2.17(c) as though it were a Lender.

(f)    A Participant shall not be entitled to
receive any greater payment under Section 2.14 or 2.16 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.16
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with
Section 2.16(e) as though it were a Lender.

(g)   Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

Section 9.05.  Survival. 
All covenants, agreements, representations and warranties made by the
Credit Parties in the Loan Documents and in certificates or other instruments
delivered in connection with or pursuant to the Loan Documents shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that any Lender Party may have had notice or
knowledge of any Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect
as long as any principal of or accrued interest on any Loan or any fee or other
amount payable hereunder is outstanding and unpaid or any Commitment has not
expired or terminated.  The provisions of
Sections 2.14, 2.15, 2.16 and 9.03 and Article 8 shall survive and remain in
full force and effect regardless of the

 80
 

 

 

consummation of the Transactions, the repayment of the
Loans, the expiration or termination of the Commitments or the termination of
this Agreement or any provision hereof.

Section 9.06.  Counterparts; Integration; Effectiveness.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement, the other Loan Documents, the Fee Letter and any other separate
letter agreements with respect to fees payable to the Administrative Agent
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this
Agreement (i) will become effective when the Administrative Agent shall have
signed this Agreement and received counterparts hereof that, when taken
together, bear the signatures of each of the other parties hereto and (ii)
thereafter will be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 
Delivery of an executed counterpart of a signature page of this
Agreement by facsimile will be effective as delivery of a manually executed
counterpart of this Agreement. Notwithstanding anything herein to the contrary,
solely as between the Borrower and Credit Suisse, if a Lender fails to make its
share of any Loans to be made on the Closing Date available to the
Administrative Agent, Credit Suisse agrees to make such Loan to the Borrower.
Nothing in the preceding sentence shall be deemed to relieve any Lender from
its obligation to fulfill its Commitment hereunder or to prejudice any rights
that the Administrative Agent may have against such Lender as a result of such
failure to lend.

Section 9.07.  Severability.  If
any provision of any Loan Document is invalid, illegal or unenforceable in any
jurisdiction then, to the fullest extent permitted by law, (i) such provision
shall, as to such jurisdiction, be ineffective to the extent (but only to the
extent) of such invalidity, illegality or unenforceability, (ii) the other provisions
of the Loan Documents shall remain in full force and effect in such
jurisdiction and shall be liberally construed in favor of the Lender Parties in
order to carry out the intentions of the parties thereto as nearly as may be
possible and (iii) the invalidity, illegality or unenforceability of any such
provision in any jurisdiction shall not affect the validity, legality or
enforceability of such provision in any other jurisdiction.

Section 9.08.  Right of Set-off.  If an Event of Default shall have occurred
and be continuing, each Lender and each of its Affiliates is authorized at any
time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such
Lender or Affiliate to or for the credit or the account of the Borrower against
any obligations of the Borrower now or hereafter existing hereunder and held by
such Lender,

 81
 

 

 

irrespective of whether or not such Lender shall have
made any demand hereunder and although such obligations may be unmatured.  The rights of each Lender under this Section
are in addition to other rights and remedies (including other rights of setoff)
that such Lender may have.

Section 9.09.  Governing Law; Jurisdiction; Consent to Service of
Process.  (a) This Agreement
shall be construed in accordance with and governed by the law of the State of
New York.

(b)          The Borrower irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any relevant appellate court, in any action or proceeding arising out
of or relating to any Loan Document, or for recognition or enforcement of any
judgment, and each party hereto irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in such New York State court or, to the extent permitted by law, in such
Federal court.  Each party hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.  Nothing in any
Loan Document shall affect any right that any Lender Party may otherwise have
to bring any action or proceeding relating to any Loan Document against any Credit
Party or its properties in the courts of any jurisdiction.

(c)           The Borrower irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection that it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to any Loan Document
in any court referred to in subsection (b) of this Section.  Each party hereto irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of any such suit, action or proceeding in any such court.

(d)          Each party hereto irrevocably consents
to service of process in the manner provided for notices in Section 9.01.  Nothing in any Loan Document will affect the
right of any party hereto to serve process in any other manner permitted by
law.

Section 9.10.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY
LOAN DOCUMENT OR ANY TRANSACTION CONTEMPLATED THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT

 82
 

 

 

NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION.

Section 9.11.  Appointment of Agent for Service of Process.  (a) 
The Borrower hereby irrevocably designates, appoints, authorizes and
empowers as its agent for service of process, CT Corporation System, at its
offices currently located at 111 Eighth Avenue, 13th Floor, New York, NY 10011
(the “Process Agent”), to accept
and acknowledge for and on behalf of the Borrower service of any and all
process, notices or other documents that may be served in any suit, action or
proceeding relating hereto in any New York State or Federal court sitting in
the State of New York.  Such designation
and appointment shall be irrevocable until all principal of and interest on the
Loans and other sums payable under the Loan Documents shall have been paid in
full in accordance with the provisions thereof. 
The Borrower covenants and agrees that it shall take any and all
reasonable action, including the execution and filing of any and all documents,
that may be necessary to continue the foregoing designations and appointments
in full force and effect and to cause the Process Agent to continue to act in
such capacity.

(b)        The Borrower consents to process being
served in any suit, action or proceeding of the nature referred to in Section
9.09 by serving a copy thereof upon the Process Agent.  Without prejudice to the foregoing, the
Lenders and the Administrative Agent agree that to the extent lawful and
possible, written notice of said service upon the Process Agent shall also be
mailed by registered or certified airmail, postage prepaid, return receipt
requested, to the Borrower at its address specified in or pursuant to Section
9.01 or to any other address of which the Borrower shall have given written
notice to the Administrative Agent.  If
said service upon the Process Agent shall not be possible or shall otherwise be
impractical after reasonable efforts to effect the same, the Borrower consents
to process being served in any suit, action or proceeding of the nature
referred to in Section 9.09 by the mailing of a copy thereof by registered or
certified airmail, postage prepaid, return receipt requested, to the address of
the Borrower specified in or pursuant to Section 9.01 or to any other address
of which the Borrower shall have given written notice to the Administrative
Agent, which service shall be effective 14 days after deposit in the United
States Postal Service. The Borrower agrees that such service (i) shall be
deemed in every respect effective service of process upon the Borrower in any
such suit, action or proceeding and (ii) shall to the fullest extent permitted
by law, be taken and held to be valid personal service upon and personal
delivery to the Borrower.

 83
 

 

 

(c)        Nothing in this Section shall affect the
right of any party hereto to serve process in any manner permitted by law, or
limit any right that any party hereto may have to bring proceedings against any
other party hereto in the courts of any jurisdiction or to enforce in any
lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

Section 9.12.  Waiver of Immunity.  To the extent that the Borrower has or
hereafter may acquire any immunity from jurisdiction of any court or from any
legal process (whether through service or notice, attachment prior to judgment,
attachment in aid or execution, or otherwise) with respect to itself or its
property, the Borrower hereby irrevocably waives such immunity in respect of
its obligations under the Loan Documents to the extent permitted by applicable
law and, without limiting the generality of the foregoing, agrees that the
waivers set forth in this Section shall have effect to the fullest extent
permitted under the Foreign Sovereign Immunities Act of 1976 of the United
States of America and are intended to be irrevocable for purposes of such Act.

Section 9.13.  Judgment Currency.  (a) 
If, for the purpose of obtaining judgment in any court, it is necessary
to convert a sum due hereunder in dollars into another currency, the parties
hereto agree, to the fullest extent that they may legally and effectively do
so, that the rate of exchange used shall be that at which in accordance with
normal banking procedures the Administrative Agent could purchase dollars with
such other currency in New York, New York, on the Business Day immediately preceding
the day on which final judgment is given.

(b)        The obligation of the Borrower in
respect of any sum due to any Lender hereunder in dollars shall, to the extent
permitted by applicable law, notwithstanding any judgment in a currency other
than dollars, be discharged only to the extent that on the Business Day
following receipt of any sum adjudged to be so due in the judgment currency
such Lender may in accordance with normal banking procedures purchase dollars
in the amount originally due to such Lender with the judgment currency.  If the amount of dollars so purchased is less
than the sum originally due to such Lender, the Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify such Lender
against the resulting loss; and if the amount of dollars so purchased is
greater than the sum originally due to such Lender, such Lender agrees to repay
such excess.

Section 9.14.  English Language.  Any translation of this Agreement into
another language shall have no interpretive effect. All documents or notices to
be delivered pursuant to or in connection with this Agreement shall be in the
English language or, if any such document or notice is not in the English
language, accompanied by an English translation thereof, and the English
language version of any such document or notice shall control for purposes
hereof.

 84
 

 

 

Section 9.15.  Headings. 
Article and Section headings and the Table of Contents herein are for
convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting,
this Agreement.

Section 9.16.  Confidentiality.  Each Lender Party agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers, employees
and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedy hereunder or any
suit, action or proceeding relating to any Loan Document or the enforcement of
any right thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any actual or
prospective assignee of or Participant in any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and
its obligations, (g) with the consent of the Borrower or (h) to the extent such
Information either (i) becomes publicly available other than as a result of a
breach of this Section or (ii) is or becomes available to any Lender Party on a
nonconfidential basis from a source other than the Borrower.  For the purposes of this Section, “Information” means all information received
from the Borrower relating to the Borrower or its business; provided that, in the case of information
received from the Borrower after the date hereof, such information is clearly
identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

EACH LENDER ACKNOWLEDGES THAT
INFORMATION AS DEFINED IN THIS SECTION FURNISHED TO IT PURSUANT TO THIS
AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER
AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT
HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC
INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN
ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND
STATE SECURITIES LAWS.

 85
 

 

 

ALL INFORMATION, INCLUDING REQUESTS
FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE
AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION
ABOUT THE BORROWER, THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR
RESPECTIVE SECURITIES.  ACCORDINGLY, EACH
LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS
IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE
INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH
ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

Section 9.17.  Release of Guarantees and Collateral.  (a) A Guarantor shall be
automatically released from its Transaction Guarantee in the circumstances set
forth in Section 2(c) of the Guarantee Agreement.

(b)        All the Transaction Guarantees will be
automatically released when all the Release Conditions (as defined in the
Guarantee Agreement) are satisfied (subject to reinstatement as set forth in
the Guarantee Agreement).

(c)        The Transaction Liens granted by a
Guarantor pursuant to a Pledge Agreement shall terminate upon the earlier of
(i) the release of its Transaction Guarantee pursuant to Section 2(c) of the
Guarantee Agreement and (ii) the satisfaction of all of the Ratings Release
Conditions (as defined in such Pledge Agreement) (subject to reinstatement as
set forth in Section 5.12).

(d)        The Transaction Liens granted by the
Borrower pursuant to a Pledge Agreement shall terminate upon the earlier of (i)
the satisfaction of all of the Release Conditions (as defined in such Pledge
Agreement) and (ii) the satisfaction of all of the Ratings Release Conditions
(as defined in such Pledge Agreement) (subject to reinstatement as set forth in
Section 5.12).

(e)        The Transaction Liens granted by each
Domestic Subsidiary pursuant to the Security Agreement or a Mortgage shall
terminate upon the earlier of (i) the satisfaction of all of the Release
Conditions (as defined in the Security Agreement) and (ii) the satisfaction of
all of the Ratings Release Conditions (as defined in the Security Agreement)
(subject to reinstatement as set forth in Section 5.12).

(f)         The Administrative Agent shall be fully
protected in relying upon a certificate of a Financial Officer of the Borrower
as to whether the Ratings Release Conditions are satisfied under any Security
Document.

 86
 

 

 

Section 9.18.  Interest Rate Limitation.  Notwithstanding anything herein to
the contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts that are treated as interest on such
Loan under applicable law (collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum
Rate”) that may be contracted for, charged or otherwise received by
the Lender holding such Loan in accordance with applicable law, the rate of
interest payable in respect of such Loan hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan but were not payable as a result of the operation of this Section
shall be cumulated and the interest and Charges payable to such Lender in
respect of other Loans or periods shall be increased (but not above the Maximum
Rate therefor) until such Lender shall have received such cumulated amount,
together with interest thereon at the Federal Funds Effective Rate to the date
of payment.

Section 9.19.  USA Patriot Act.  Each Lender hereby notifies the
Borrower that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot  Act”),
it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender to identify the Borrower in
accordance with the Act.

 87

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	
  

  	
   

  	
  MARVELL
  TECHNOLOGY GROUP

  LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ George Hervey

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  George Hervey

  
	
   

  	
   

  	
   

  	
  Title:

  	
  V.P. and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT SUISSE,
  CAYMAN ISLANDS

  BRANCH, as a Lender and as

  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Phillip Ho

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Phillip Ho

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Shaheen Malik

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Shaheen Malik

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Associate

  
						

 

 

 

 

	
  

  	
   

  	
  LASALLE BANK
  NATIONAL

  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Sarabelle Hitchner

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Sarabelle Hitchner

  
	
   

  	
   

  	
   

  	
  Title:

  	
  [illegible] Vice President

  
						

 

 

 

 

	
  

  	
   

  	
  KEYBANK NATIONAL

  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Rasd Y. Alfayonmi

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Rasd Y. Alfayonmi

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

 

 

	
  

  	
   

  	
  COMMERZBANK AG,
  NEW YORK

  AND GRAND CAYMAN

  BRANCHES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Karla Wirth

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Karla Wirth

  
	
   

  	
   

  	
   

  	
  Title:

  	
  AVP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Yangling J. Si

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Yangling J. Si

  
	
   

  	
   

  	
   

  	
  Title:

  	
  AVP

  
						

 

 

 

 

	
  

  	
   

  	
  E.SUN COMMERCIAL BANK, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Benjamin Lin

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Benjamin Lin

  
	
   

  	
   

  	
   

  	
  Title:

  	
  EVP & General Manager

  
						

 

 

 

Pricing Schedule

“Applicable Base Rate Margin” means (i) on
any date prior to the Trigger Date, 1.00% per annum and (ii) on any date on or
after the Trigger Date, the applicable rate per annum set forth below under the
caption “Applicable Base Rate Margin”.

“Applicable Eurodollar Margin” means (i) on
any date prior to the Trigger Date, 2.00% per annum and (ii) on any date on or
after the Trigger Date, the applicable rate per annum set forth below under the
caption “Applicable Eurodollar Margin”.

	
  

  	
   

  	
  Applicable Base Rate

  Margin

  	
   

  	
  Applicable Eurodollar

  Margin

  	
   

  
	
  Category 1

  	
   

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 2

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 3

  	
   

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 4

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 5

  	
   

  	
  1.50

  	
  %

  	
  2.50

  	
  %

  

 

For purposes of this Schedule, the following terms
have the following meanings:

“Category 1”
exists at any date if, at such date, the corporate family rating of the
Borrower is at least Baa2 by Moody’s and the corporate rating of the Borrower
is at least BBB by S&P, in each case with no negative outlook.

“Category 2”
exists at any date if, at such date, (i) the corporate family rating of the
Borrower is at least Baa3 by Moody’s and the corporate rating of the Borrower
is at least BBB- by S&P, in each case with no negative outlook and (ii)
Category 1 does not exist.

“Category 3”
exists at any date if, at such date, (i) the corporate family rating of the
Borrower is at least Ba1 by Moody’s and the corporate rating of the Borrower is
at least BB+ by S&P, in each case with no negative outlook and (ii) neither
Category 1 nor Category 2 exists.

“Category 4”
exists at any date if, at such date, (i) the corporate family rating of the
Borrower is at least Ba2 by Moody’s and the corporate rating of the Borrower is
at least BB by S&P, in each case with no negative outlook and (ii) none of
Category 1, Category 2 and Category 3 exists.

 

 

“Category 5”
exists at any date, if at such date, no other Category exists (including by
reason of the Borrower not having a corporate family rating from Moody’s or the
Borrower not having a corporate rating from S&P).

“Category”
refers to the determination of which of Category 1, Category 2, Category 3,
Category 4 or Category 5 exists at any date.

Each change in the Applicable Base Rate Margin or the
Applicable Eurodollar Margin resulting from a publicly announced change in the
rating shall be effective, in the case of an upgrade, during the period
commencing on the date of delivery by the Borrower to the Administrative Agent
of notice thereof pursuant to Section 5.01(h) and ending on the date
immediately preceding the effective date of the next such change and, in the
case of a downgrade, during the period commencing on the date of the public
announcement thereof and ending on the date immediately preceding the effective
date of the next such change.

For the avoidance doubt, if there is a split in the
corporate family rating of the Borrower from Moody’s and the corporate rating
of the Borrower from S&P, then the lower of such ratings shall be used to
determine the Category.

 

 

Schedule
2.01

Commitment Schedule

	
  Name of Lender

  	
   

  	
  Commitment

  	
   

  
	
  Credit Suisse, Cayman
  Islands Branch

  	
   

  	
  $

  	
  255,000,000

  	
   

  
	
  LaSalle Bank National
  Association

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  KeyBank National
  Association

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  Commerzbank AG, New
  York and Grand Cayman Branches

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  E.Sun Commercial Bank,
  Ltd.

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  400,000,000EXHIBIT 10.2
 

 

US PLEDGE
AGREEMENT

dated as of

November 8, 2006

among

MARVELL TECHNOLOGY
GROUP LTD.,

THE GUARANTORS
PARTY HERETO,

 

and

 

CREDIT SUISSE, CAYMAN
ISLANDS BRANCH,

as Administrative Agent

   
 

 

TABLE
OF CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  Section 1.

  	
   

  	
  Definitions

  	
   

  	
  1

  	
   

  
	
  Section 2.

  	
   

  	
  Grant
  of Transaction Liens

  	
   

  	
  7

  	
   

  
	
  Section 3.

  	
   

  	
  General
  Representations and Warranties

  	
   

  	
  7

  	
   

  
	
  Section 4.

  	
   

  	
  Further
  Assurances; General Covenants

  	
   

  	
  8

  	
   

  
	
  Section 5.

  	
   

  	
  Specified
  Equity Interests

  	
   

  	
  10

  	
   

  
	
  Section 6.

  	
   

  	
  Transfer
  Of Record Ownership

  	
   

  	
  11

  	
   

  
	
  Section 7.

  	
   

  	
  Right
  to Vote Securities

  	
   

  	
  11

  	
   

  
	
  Section 8.

  	
   

  	
  Right
  to Receive Distribution on Collateral

  	
   

  	
  12

  	
   

  
	
  Section 9.

  	
   

  	
  Remedies
  upon Event of Default

  	
   

  	
  13

  	
   

  
	
  Section 10.

  	
   

  	
  Application
  of Proceeds

  	
   

  	
  13

  	
   

  
	
  Section 11.

  	
   

  	
  Fees
  and Expenses; Indemnification

  	
   

  	
  15

  	
   

  
	
  Section 12.

  	
   

  	
  Authority
  to Administer Collateral

  	
   

  	
  15

  	
   

  
	
  Section 13.

  	
   

  	
  Limitation
  on Duty in Respect of Collateral

  	
   

  	
  16

  	
   

  
	
  Section 14.

  	
   

  	
  General
  Provisions Concerning the Administrative Agent

  	
   

  	
  16

  	
   

  
	
  Section 15.

  	
   

  	
  Termination
  of Transaction Liens; Release of Collateral

  	
   

  	
  17

  	
   

  
	
  Section 16.

  	
   

  	
  Additional
  Transaction Lien Grantors

  	
   

  	
  18

  	
   

  
	
  Section 17.

  	
   

  	
  Notices

  	
   

  	
  18

  	
   

  
	
  Section 18.

  	
   

  	
  No
  Implied Waivers; Remedies Not Exclusive

  	
   

  	
  18

  	
   

  
	
  Section 19.

  	
   

  	
  Successors
  and Assigns

  	
   

  	
  19

  	
   

  
	
  Section 20.

  	
   

  	
  Amendments
  and Waivers

  	
   

  	
  19

  	
   

  
	
  Section 21.

  	
   

  	
  Governing
  Law; Jurisdiction; Consent to Service of Process

  	
   

  	
  19

  	
   

  
	
  Section 22.

  	
   

  	
  Waiver
  of Jury Trial

  	
   

  	
  20

  	
   

  
	
  Section 23.

  	
   

  	
  Appointment
  of Agent for Service of Process

  	
   

  	
  20

  	
   

  
	
  Section 24.

  	
   

  	
  Waiver
  of Immunity

  	
   

  	
  21

  	
   

  
	
  Section 25.

  	
   

  	
  Judgment
  Currency

  	
   

  	
  22

  	
   

  
	
  Section 26.

  	
   

  	
  Use
  of English Language

  	
   

  	
  22

  	
   

  
	
  Section 27.

  	
   

  	
  Severability

  	
   

  	
  22

  	
   

  
	
  Section 28.

  	
   

  	
  Counterparts,
  Integration, Effectiveness

  	
   

  	
  22

  	
   

  

 

 i
 

 

 

SCHEDULES:

Schedule 1                                    Specified Equity Interests Owned by
Original Lien Grantors

Schedule 2                                    UCC
Information

EXHIBITS:

Exhibit A                                              Pledge
Agreement Supplement

Exhibit B                                              Issuer
Control Agreement

 ii

US PLEDGE AGREEMENT

US
PLEDGE AGREEMENT dated as of November 8, 2006 among MARVELL TECHNOLOGY GROUP
LTD., as Borrower and Lien Grantor, the GUARANTORS party hereto and CREDIT
SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent.

WHEREAS,
the Borrower is entering into the Credit Agreement described in Section 1
hereof, pursuant to which the Borrower intends to borrow funds for the purposes
set forth therein;

WHEREAS,
the Borrower is willing to secure (i) its obligations under the Credit
Agreement and (ii) its obligations under certain Hedging Agreements by granting
Liens on certain of its assets to the Administrative Agent as provided in the
Security Documents;

WHEREAS,
each of the Guarantors is willing to guarantee the foregoing obligations of the
Borrower pursuant to the Guarantee Agreement and to secure its guarantee by
granting Liens on certain of its assets to the Administrative Agent as provided
in the Security Documents;

WHEREAS,
the Lenders are not willing to make loans under the Credit Agreement, and the
counterparties to the Hedging Agreements referred to above are not willing to
enter into or maintain them, unless (i) the foregoing obligations of the
Borrower are secured and guaranteed as described above and (ii) each guarantee
thereof is secured by Liens on assets of the relevant Guarantor as provided
herein; and

WHEREAS,
upon any foreclosure or other enforcement of the Security Documents, the net
proceeds of the relevant Collateral are to be received by or paid over to the
Administrative Agent and applied as provided herein;

NOW,
THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 

Section 1.  Definitions. 

(a)   Terms Defined in Credit Agreement.  Terms defined in the Credit Agreement and not
otherwise defined in subsection (b) or (c) of this Section have, as used
herein, the respective meanings provided for therein. 

(b)   Terms Defined in UCC.  As used herein, each of the following terms has the
meaning specified in the UCC:

 

 

	
  Term

  	
   

  	
   

  	
   

  	
  UCC

  	
   

  
	
  Authenticate

  	
   

  	
  9-102

  	
   

  
	
  Certificated
  Security

  	
   

  	
  8-102

  	
   

  
	
  Control

  	
   

  	
  8-106

  	
   

  
	
  Securities
  Intermediary

  	
   

  	
  8-102

  	
   

  
	
  Security

  	
   

  	
  8-102 & 10

  	
  3

  
	
  Uncertificated Security

  	
   

  	
  8-102

  	
   

  

 

(c)   Additional Definitions.  The following additional terms, as used
herein, have the following meanings:

“Agreement” means this US Pledge Agreement.

“Borrower” means Marvell Technology Group
Ltd., a Bermuda exempted company.

“Cash Distributions” means dividends,
interest and other distributions and payments (including proceeds of
liquidation, sale or other disposition) made or received in cash upon or with
respect to any Collateral. 

“Collateral” means all property, whether now
owned or hereafter acquired, on which a Lien is granted or purports to be
granted to the Administrative Agent pursuant to the Security Documents.  When used with respect to a specific Lien
Grantor, the term “Collateral” means all its property on which such a Lien is
granted or purports to be granted by such Lien Grantor.

“Contingent Secured Obligation” means, at
any time, any Secured Obligation (or portion thereof) that is contingent in
nature at such time, including any Secured Obligation that is:

(i)       an obligation under a Hedging Agreement
to make payments that cannot be quantified at such time;

(ii)      any other obligation (including any
guarantee) that is contingent in nature at such time; or

(iii)     an obligation to provide collateral to
secure any of the foregoing types of obligations.

“Credit Agreement” means the Credit
Agreement dated as of November 8, 2006 among Marvell Technology Group Ltd., the
Lenders party thereto and Credit Suisse, Cayman Islands Branch, as
Administrative Agent.

“Effective Date” means the date hereof.

 2
 

 

 

“Equity Interest” means (i) in the case of a
corporation, any shares of its capital stock, (ii) in the case of a limited
liability company, any membership interest therein, (iii) in the case of a
partnership, any partnership interest (whether general or limited) therein,
(iv) in the case of any other business entity, any participation or other
interest in the equity or profits thereof, or (v) any warrant, option or other
right to acquire any Equity Interest described in this definition.

“Guarantee Agreement” means that certain Guarantee Agreement
dated as of November 8, 2006 among Marvell Technology Group Ltd., as Borrower,
the Guarantors party thereto and Credit Suisse, Cayman Islands Branch, as
Administrative Agent.

“Guarantors” means each Subsidiary listed on
the signature pages of the Guarantee Agreement under the caption “Guarantors”
and each Subsidiary that shall, at any time after the date thereof, become a
Guarantor pursuant to the Guarantee Agreement.

“Issuer Control Agreement” means an Issuer
Control Agreement substantially in the form of Exhibit B (with any changes that
the Administrative Agent shall have approved).

“Lien Grantors” means the Borrower and the
Guarantors.

“LLC Interest” means a membership interest
or similar interest in a limited liability company.

“Non-Contingent Secured Obligation”
means at any time any Secured Obligation (or portion thereof) that is not a
Contingent Secured Obligation at such time.

“Opinion of Counsel” means a written opinion
of legal counsel (who may be counsel to a Lien Grantor or other counsel, in
either case approved by the Administrative Agent) addressed and delivered to
the Administrative Agent.

“Original Lien Grantor” means any Lien
Grantor that grants a Lien on any of its assets hereunder on the Effective
Date.

“own” refers to the possession of sufficient
rights in property to grant a security interest therein as contemplated by UCC
Section 9-203, and “acquire”
refers to the acquisition of any such rights.

“Partnership Interest” means a partnership
interest, whether general or limited.

 3
 

 

 

“Permitted Liens” means (i) the Transaction
Liens and (ii) any other Liens on the Collateral permitted to be created or
assumed or to exist pursuant to Section 6.02 of the Credit Agreement.

“Pledge Agreement Supplement” means a Pledge
Agreement Supplement, substantially in the form of Exhibit A, signed and
delivered to the Administrative Agent for the purpose of adding a Subsidiary as
a party hereto pursuant to Section 16 and/or adding additional property to the
Collateral.

“Pledged”, when used in conjunction with any
type of asset, means at any time an asset of such type that is included (or
that creates rights that are included) in the Collateral at such time.

“Post-Petition Interest” means any
interest that accrues after the commencement of any case, proceeding or other
action relating to the bankruptcy, insolvency or reorganization of any one or
more of the Lien Grantors (or would accrue but for the operation of applicable
bankruptcy or insolvency laws), whether or not such interest is allowed or allowable
as a claim in any such proceeding.

“Proceeds” means all proceeds of, and all
other profits, products, rents or receipts, in whatever form, arising from the
collection, sale, lease, exchange, assignment, licensing or other disposition
of, or other realization upon, any Collateral, including all claims of the
relevant Lien Grantor against third parties for loss of, damage to or
destruction of, or for proceeds payable under, or unearned premiums with
respect to, policies of insurance in respect of, any Collateral, and any
condemnation or requisition payments with respect to any Collateral.

“Ratings Release Conditions” means the following conditions
for terminating all the Transaction Liens:

(i) the Borrower shall
have given notice to the Administrative Agent at least 15 days prior to a date
(the “Release Date”) specifying such Release
Date;

(ii)      as of the Release Date, the corporate
family rating of the Borrower shall be at least Baa3 by Moody’s and the
corporate rating of the Borrower shall be at least BBB- by S&P, in each
case with no negative outlook;

(iii)     as of the Release Date, no Default shall
have occurred and be continuing; and

 4
 

 

 

(iv) on the Release Date,
the Administrative Agent shall have received a certificate, dated the Release
Date and executed by a Financial Officer, confirming the satisfaction of the
preceding conditions.

“Release Conditions” means the following
conditions for terminating all the Transaction Liens:

(i)       all Commitments under the Credit
Agreement shall have expired or been terminated;

(ii)      all Non-Contingent Secured Obligations
shall have been paid in full; and

(iii)     no Contingent Secured Obligation (other
than contingent indemnification and expense reimbursement obligations as to
which no claim shall have been asserted) shall remain outstanding.

“Secured Agreement”, when used with respect
to any Secured Obligation, refers collectively to the instruments, agreements
and other documents that set forth the obligations of a Credit Party and/or the
rights of a Secured Party with respect to such Secured Obligation.

“Secured Obligations” means (i) all
principal of all Loans outstanding from time to time under the Credit
Agreement, all interest (including Post-Petition Interest) on such Loans
and all other amounts now or hereafter payable by the Borrower pursuant to the
Loan Documents, and (ii) all obligations of any Lien Grantor under any Hedging
Agreement that is entered into with any counterparty that is the Arranger, the
Administrative Agent or a Lender or an Affiliate of the Arranger, the
Administrative Agent or a Lender, in each case at the time such Hedging
Agreement is entered into.

“Secured Parties” means the holders from
time to time of the Secured Obligations.

“Secured Party Requesting Notice” means, at
any time, a Secured Party that has, at least five Business Days prior thereto,
delivered to the Administrative Agent a written notice (i) stating that it
holds one or more Secured Obligations and wishes to receive copies of the
notices referred to in Section 14(e) and (ii) setting forth its address,
facsimile number and e-mail address to which copies of such notices should be
sent.

“Security Documents” means this Agreement,
the Pledge Agreement Supplements, the Issuer Control Agreements and all other
supplemental or additional pledge agreements, control agreements or similar
instruments delivered with respect to any Specified Equity Interests pursuant
to the Loan Documents.

 5
 

 

 

“Specified Equity Interests” means (i) any Equity Interests
in Marvell Technology, Inc., a Delaware corporation, (ii) any Equity Interests
in Marvell Semiconductor, Inc., a California corporation, that are owned by
Marvell Technology, Inc., a Delaware corporation, and (iii) any Equity
Interests pledged pursuant to any Pledge Agreement Supplement.

“Transaction Guarantee” means, with respect
to each Guarantor, its guarantee of the Secured Obligations pursuant to the
Guarantee Agreement or a Guarantee Agreement Supplement.

“Transaction Liens” means the Liens granted
by the Lien Grantors under the Security Documents.

“UCC” means the Uniform Commercial Code as
in effect from time to time in the State of New York; provided that, if perfection or the effect
of perfection or non-perfection or the priority of any Transaction Lien
on any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in
effect from time to time in such other jurisdiction for purposes of the
provisions hereof relating to such perfection, effect of perfection or non-perfection
or priority.

(d)   Terms Generally.  The
definitions of terms herein (including those incorporated by reference to the
UCC or to another document) apply equally to the singular and plural forms of
the terms defined.  Whenever the context
may require, any pronoun includes the corresponding masculine, feminine and
neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be construed to have the same meaning
and effect as the word “shall”.  Unless the context requires otherwise, (i)
any definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth in any Loan Document), (ii) any reference herein to any Person shall
be construed to include such Person’s successors and assigns, (iii) the words “herein”, “hereof”
and “hereunder”, and words of
similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, (iv) all references herein to
Sections, Exhibits and Schedules shall be construed to refer to Sections of,
and Exhibits and Schedules to, this Agreement and (v) the word “property” shall be construed to refer to
any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

 6
 

 

 

(e)   If the Loans or any portion
thereof shall have been declared to be due and payable (or shall automatically
have become due and payable) as set forth in Article 7 of the Credit Agreement,
then for all purposes hereof the Administrative Agent shall be deemed to have
notified each of the Lien Grantors concurrently with the occurrence of such
event of its intention to exercise its rights under the Security Documents.

Section 2.  Grant of Transaction Liens. 

(a)   The
Borrower, in order to secure the Secured Obligations, and each Guarantor listed
on the signature pages hereof, in order to secure its Transaction Guarantee,
grants to the Administrative Agent for the benefit of the Secured Parties a
continuing security interest in all the following property of the Borrower or
such Guarantor, as the case may be, whether now owned or existing or hereafter
acquired or arising and regardless of where located:

(i)    all
Specified Equity Interests; and

(ii)   all Proceeds of the
Specified Equity Interests.

(b)   The Transaction Liens are
granted as security only and shall not subject the Administrative Agent or any
other Secured Party to, or transfer or in any way affect or modify, any
obligation or liability of any Lien Grantor with respect to any of the
Collateral or any transaction in connection therewith.

Section 3.  General Representations and Warranties. 

 Each Original Lien Grantor represents and
warrants that: 

(a)   Such Lien Grantor is duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization. 

(b)   Schedule 1 lists all
Specified Equity Interests owned by such Lien Grantor as of the Effective
Date.  Such Lien Grantor holds all such
Equity Interests directly (i.e., not
through a Subsidiary, a Securities Intermediary or any other Person).

(c)   All Specified Equity
Interests owned by such Lien Grantor are owned by it free and clear of any Lien
other than (i) the Transaction Liens and (ii) any inchoate tax liens.  All shares of capital stock included in such
Specified Equity Interests have been duly authorized and validly issued and are
fully paid and non-assessable. 
None of such Specified Equity Interests is subject to any option to
purchase or similar right of any Person. 
Such Lien Grantor is not and will not become a party to or otherwise
bound by any agreement (except the Loan Documents) which restricts in any
manner the rights of any present or future holder of any Specified Equity
Interest with respect thereto.

 7
 

 

 

(d)   No financing statement,
security agreement, mortgage or similar or equivalent document or instrument
covering all or part of the Collateral owned by such Lien Grantor is on file or
of record in any jurisdiction in which such filing or recording would be
effective to perfect or record a Lien on such Collateral, except financing
statements, mortgages or other similar or equivalent documents with respect to
the Transaction Liens.

(e)   The Transaction Liens on all
Specified Equity Interests owned by such Lien Grantor (i) have been validly created,
(ii) will attach to each item of such Collateral on the Effective Date (or, if
such Lien Grantor first obtains rights thereto on a later date, on such later
date) and (iii) when so attached, will secure all the Secured Obligations or
such Lien Grantor’s Transaction Guarantee, as the case may be.

(f)    When UCC financing
statements describing the Collateral as set forth in Schedule 2 hereto have
been filed in the offices specified therein, the Transaction Liens will
constitute perfected security interests in the Collateral owned by such Lien
Grantor, prior to all Liens and rights of others therein.  Except for the filing of such UCC financing
statements, no registration, recordation or filing with any governmental body,
agency or official is required in connection with the execution or delivery of
the Security Documents or is necessary for the validity or enforceability
thereof or for the perfection or due recordation of the Transaction Liens or
for the enforcement of the Transaction Liens.

Section 4.  Further Assurances; General Covenants.  Each
Lien Grantor covenants as follows:

(a)   Such Lien
Grantor will, from time to time, at the Borrower’s expense, execute, deliver,
file and record any statement, assignment, instrument, document, agreement or
other paper and take any other action (including any filing of financing or
continuation statements under the UCC) that from time to time may be necessary
or reasonably desirable, or that the Administrative Agent may reasonably
request, in order to:

(i)    create, preserve, perfect,
confirm or validate the Transaction Liens on such Lien Grantor’s Collateral;

(ii)   cause the Administrative
Agent to have Control thereof;

(iii)   enable the Administrative
Agent and the other Secured Parties to obtain the full benefits of the Security
Documents; or

 8
 

 

 

(iv)   enable the Administrative
Agent to exercise and enforce any of its rights, powers and remedies with
respect to any of such Lien Grantor’s Collateral.

To the extent permitted
by applicable law, such Lien Grantor authorizes the Administrative Agent to
execute and file such financing statements or continuation statements without
such Lien Grantor’s signature appearing thereon.  Such Lien Grantor agrees that a carbon,
photographic, photostatic or other reproduction of this Agreement or of a
financing statement is sufficient as a financing statement.  Such Lien Grantor constitutes the
Administrative Agent its attorney-in-fact to execute and file all
filings required or so requested for the foregoing purposes, all acts of such
attorney being hereby ratified and confirmed; and such power, being coupled
with an interest, shall be irrevocable until all the Transaction Liens granted
by such Lien Grantor terminate pursuant to Section 15.  The Borrower will pay the costs of, or
incidental to, any recording or filing of any financing or continuation
statements or other documents recorded or filed pursuant hereto. 

(b)   Such Lien
Grantor will not (i) change its name or corporate structure, (ii) change its
location (determined as provided in UCC Section 9-307) or (iii) become
bound, as provided in UCC Section 9-203(d), by a security agreement
entered into by another Person as lien grantor, unless it shall have given the
Administrative Agent prior notice thereof and delivered a certificate of a Financial
Officer with respect thereto in accordance with Section 4(c).

(c)   At least 30
days before it takes any action contemplated by Section 4(b), such Lien Grantor
will, at the Borrower’s expense, cause to be delivered to the Administrative
Agent a certificate of a Financial Officer, in form and substance reasonably
satisfactory to the Administrative Agent, to the effect that (i) all financing
statements and amendments or supplements thereto, continuation statements and
other documents required to be filed or recorded in order to perfect and
protect the Transaction Liens against all creditors of and purchasers from such
Lien Grantor after it takes such action (except any continuation statements
specified in such certificate that are to be filed more than six months after
the date thereof) have been filed or recorded in each office necessary for such
purpose, (ii) all fees and taxes, if any, payable in connection with such
filings or recordations have been paid in full and (iii) except as otherwise
agreed by the Required Lenders, such action will not adversely affect the
perfection or priority of the Transaction Lien on any Collateral to be owned by
such Lien Grantor after it takes such action or the accuracy of such Lien
Grantor’s representations and warranties herein relating to such Collateral.

(d)   Such Lien Grantor will,
promptly upon request, provide to the Administrative Agent all information and
evidence concerning such Lien 

 9
 

 

 

Grantor’s
Collateral that the Administrative Agent may reasonably request from time to
time to enable it to enforce the provisions of the Security Documents.

(e)   From time to time upon the
reasonable request by the Required Lenders, such Lien Grantor will, at the
Borrower’s expense, cause to be delivered to the Secured Parties an Opinion of
Counsel reasonably satisfactory to the Administrative Agent as to such matters
relating to the transactions contemplated hereby as the Required Lenders may
reasonably request.

Section
5.  Specified
Equity Interests.  Each Lien
Grantor represents, warrants and covenants as follows:

(a)   Certificated Securities.  On the Effective Date (in the case of an
Original Lien Grantor) or the date on which it signs and delivers its first
Pledge Agreement Supplement (in the case of any other Lien Grantor), such Lien
Grantor will deliver to the Administrative Agent as Collateral hereunder all
certificates representing Pledged Certificated Securities then owned by such
Lien Grantor.  Thereafter, whenever such
Lien Grantor acquires any other certificate representing a Pledged Certificated
Security, such Lien Grantor will immediately deliver such certificate to the
Administrative Agent as Collateral hereunder.

(b)   Uncertificated Securities.  On the Effective Date (in the case of an
Original Lien Grantor) or the date on which it signs and delivers its first
Pledge Agreement Supplement (in the case of any other Lien Grantor), such Lien
Grantor will enter into (and cause the relevant issuer to enter into) an Issuer
Control Agreement in respect of each Pledged Uncertificated Security then owned
by such Lien Grantor and deliver such Issuer Control Agreement to the
Administrative Agent (which shall enter into the same).  Thereafter, whenever such Lien Grantor
acquires any other Pledged Uncertificated Security, such Lien Grantor will
enter into (and cause the relevant issuer to enter into) an Issuer Control
Agreement in respect of such Pledged Uncertificated Security and deliver such
Issuer Control Agreement to the Administrative Agent (which shall enter into
the same).

(c)   Perfection as to Certificated Securities.  When such Lien Grantor delivers the
certificate representing any Pledged Certificated Security owned by it to the
Administrative Agent and complies with Section 5(e) in connection with such
delivery, (i) the Transaction Lien on such Pledged Certificated Security will
be perfected, subject to no prior Liens or rights of others, (ii) the
Administrative Agent will have Control of such Pledged Certificated Security
and (iii) the Administrative Agent will be a protected purchaser (within the
meaning of UCC Section 8-303) thereof.

(d)   Perfection as to Uncertificated Securities.  When such Lien Grantor, the Administrative
Agent and the issuer of any Pledged Uncertificated Security 

 10
 

 

 

owned by such Lien
Grantor enter into an Issuer Control Agreement with respect thereto, (i) the
Transaction Lien on such Pledged Uncertificated Security will be perfected,
subject to no prior Liens or rights of others, (ii) the Administrative Agent
will have Control of such Pledged Uncertificated Security and (iii) the
Administrative Agent will be a protected purchaser (within the meaning of UCC
Section 8-303) thereof.

(e)   Delivery of Pledged Certificates.  All Pledged Certificates, when delivered to
the Administrative Agent, will be in suitable form for transfer by delivery, or
accompanied by duly executed instruments of transfer or assignment in blank,
with signatures appropriately guaranteed, all in form and substance
satisfactory to the Administrative Agent.

(f)    Communications.  Each
Lien Grantor will promptly give to the Administrative Agent copies of any
notices and other communications received by it with respect to Pledged
Securities registered in the name of such Lien Grantor or its nominee. 

(g)   Compliance with Applicable Foreign Laws.  If and so long as the Collateral includes any
Equity Interest in a legal entity organized under the laws of a jurisdiction
outside the United States, the relevant Lien Grantor will take all such action
as may be required under the laws of such foreign jurisdiction to ensure that
the Transaction Lien on such Collateral ranks prior to all Liens and rights of
others therein.  

Section 6.  Transfer Of Record Ownership. 
At
any time when an Event of Default shall
have occurred and be continuing and the Administrative Agent shall have
notified the Lien Grantors of its intent to enforce its security interest in
the Collateral, the Administrative Agent may (and to the extent that action by
it is required, the relevant Lien Grantor, if directed to do so by the Administrative
Agent, will as promptly as practicable) cause each of the Pledged Securities (or
any portion thereof specified in such direction) to be transferred of record
into the name of the Administrative Agent or its nominee.  Each Lien Grantor will take any and all
actions reasonably requested by the Administrative Agent to facilitate
compliance with this Section.  If the provisions of this Section are implemented, Section
5(b) shall not thereafter apply to any Pledged Security that is registered in
the name of the Administrative Agent or its nominee.  The Administrative Agent will promptly give
to the relevant Lien Grantor copies of any notices and other communications
received by the Administrative Agent with respect to Pledged Securities
registered in the name of the Administrative Agent or its nominee.

 

 11

Section 7.  Right to Vote Securities.

(a)   Unless an
Event of Default shall have occurred and be continuing and the Administrative
Agent shall have notified it of its intent to exercise its rights under the
Security Documents, each Lien Grantor will have the right, from time to time,
to vote and to give consents, ratifications and waivers with respect to any
Pledged Security owned by it, and the Administrative Agent will, upon receiving
a written request from such Lien Grantor, deliver to such Lien Grantor or as
specified in such request such proxies, powers of attorney, consents,
ratifications and waivers in respect of any such Pledged Security that is
registered in the name of the Administrative Agent or its nominee, in each case
as shall be specified in such request and be in form and substance satisfactory
to the Administrative Agent.  Unless an
Event of Default shall have occurred and be continuing and the Administrative
Agent shall have notified such owner of its intent to exercise its rights under
the Security Documents, the Administrative Agent will have no right to take any
action which the owner of a Pledged Partnership Interest or Pledged LLC
Interest is entitled to take with respect thereto, except the right to receive
payments and other distributions to the extent provided herein.

(b)   If an Event of Default shall have occurred
and be continuing and the Administrative Agent shall have notified a Lien
Grantor of its intent to exercise its rights under the Security Documents, the
Administrative Agent will have the right to the extent permitted by law (and,
in the case of a Pledged Partnership Interest or Pledged LLC Interest, by the
relevant partnership agreement, limited liability company agreement, operating
agreement or other governing document) to vote, to give consents, ratifications
and waivers and to take any other action with respect to the Pledged Equity
Interests of such Lien Grantor, with the same force and effect as if the
Administrative Agent were the absolute and sole owner thereof, and such Lien
Grantor will take all such action as the Administrative Agent may reasonably
request from time to time to give effect to such right.

Section 8.  Right to Receive Distribution on Collateral. If an Event of Default shall have
occurred and be continuing and the Administrative Agent shall have notified the
Lien Grantors of its intent to exercise its rights under the Security
Documents, the Administrative Agent shall have the right to receive and to
retain as Collateral hereunder all Cash Distributions and each Lien Grantor
shall take all such action as the Administrative Agent may deem necessary or
appropriate to give effect to such right. 
All such Cash Distributions which are received by a Lien Grantor during
the continuance of an Event of Default shall be received in trust for the
benefit of the Administrative Agent and the Lenders and, if the Administrative
Agent so directs during the continuance of an Event of Default, shall be
segregated from other funds of such Lien Grantor and shall, forthwith upon
demand by the Administrative Agent during the continuance of an Event of
Default, be paid over to the Administrative Agent as Collateral in the same
form as received (with any necessary endorsement).  After all Events of

 12
 

 

Default have been
cured, the Administrative Agent’s right to retain Cash Distributions under this
Section 8 shall cease and the Administrative Agent shall pay over to the
appropriate Lien Grantor any such Collateral retained by it during the
continuance of an Event of Default.

Section 9.  Remedies upon Event of Default.  

(a)   If an Event
of Default shall have occurred and be continuing, the Administrative Agent may
exercise (or cause its sub-agents to exercise) any or all of the remedies
available to it (or to such sub-agents) under the Security Documents.

(b)   Without limiting the generality of the
foregoing, if an Event of Default shall have occurred and be continuing, the
Administrative Agent may exercise on behalf of the Secured Parties all the
rights of a secured party under the UCC (whether or not in effect in the
jurisdiction where such rights are exercised) with respect to any Collateral
and, in addition, the Administrative Agent may, without being required to give
any notice, except as herein provided or as may be required by mandatory
provisions of law, withdraw all cash held by it pursuant to Section 8 and apply
such cash as provided in Section 10 and, if there shall be no such cash or if
such cash shall be insufficient to pay all the Secured Obligations in full,
sell or otherwise dispose of the Collateral or any part thereof.  Notice of any such sale or other disposition
shall be given to the relevant Lien Grantor(s) as required by Section 12.

Section 10.  Application of Proceeds. 

(a)   If an Event of Default shall have occurred
and be continuing, the Administrative Agent may apply (i) any cash held by it
and (ii) the proceeds of any sale or other disposition of all or any part of
the Collateral, in the following order of priorities: 

                first,     to
pay the expenses of such sale or other disposition, including reasonable
compensation to agents of and counsel for the Administrative Agent, and all
expenses, liabilities and advances incurred or made by the Administrative Agent
in connection with the Security Documents, and any other amounts then due and
payable to the Administrative Agent pursuant to Section 9.03 of the Credit
Agreement;

          second,     to pay the
unpaid principal of the Secured Obligations ratably (or provide for the payment
thereof pursuant to Section 10(b)), until payment in full of the principal of
all Secured Obligations shall have been made (or so provided for);

 13
 

 

 

              third,     to
pay ratably all interest (including Post-Petition Interest) on the
Secured Obligations payable under the Credit Agreement, until payment in full
of all such interest and fees shall have been made;

            fourth,     to
pay all other Secured Obligations ratably (or provide for the payment thereof
pursuant to Section 10(b)), until payment in full of all such other Secured
Obligations shall have been made (or so provided for); and

           finally,     to
pay to the relevant Lien Grantor, or as a court of competent jurisdiction may
direct, any surplus then remaining from the proceeds of the Collateral owned by
it;

provided that Collateral owned by a Guarantor and
any proceeds thereof shall be applied pursuant to the foregoing clauses first, second,
third and fourth only to the extent permitted by the
limitation in Section 2(i) of the Guarantee Agreement.  The Administrative Agent may make such
distributions hereunder in cash or in kind or, on a ratable basis, in any
combination thereof.

(b)   If at any time any portion
of any monies collected or received by the Administrative Agent would, but for
the provisions of this Section 10(b), be payable pursuant to Section 10(a) in
respect of a Contingent Secured Obligation, the Administrative Agent shall not
apply any monies to pay such Contingent Secured Obligation but instead shall
request the holder thereof, at least 10 days before each proposed distribution
hereunder, to notify the Administrative Agent as to the maximum amount of such
Contingent Secured Obligation if then ascertainable.  If the holder of such Contingent Secured
Obligation does not notify the Administrative Agent of the maximum ascertainable
amount thereof at least two Business Days before such distribution, such holder
will not be entitled to share in such distribution.  If such holder does so notify the
Administrative Agent as to the maximum ascertainable amount thereof, the
Administrative Agent will allocate to such holder a portion of the monies to be
distributed in such distribution, calculated as if such Contingent Secured
Obligation were outstanding in such maximum ascertainable amount.  However, the Administrative Agent will not
apply such portion of such monies to pay such Contingent Secured Obligation,
but instead will hold such monies or invest such monies in Permitted
Investments.  All such monies and
Permitted Investments and all proceeds thereof will constitute Collateral
hereunder, but will be subject to distribution in accordance with this Section
10(b) rather than Section 10(a).  The
Administrative Agent will hold all such monies and Permitted Investments and
the net proceeds thereof in trust until all or part of such Contingent Secured
Obligation becomes a Non-Contingent Secured Obligation, whereupon the
Administrative Agent at the request of the relevant Secured Party will apply
the amount so held in trust to pay such Non-Contingent Secured
Obligation; provided that, if the
other Secured 

 14
 

 

Obligations theretofore paid pursuant to the same
clause of Section 10(a) (i.e.,
clause second or fourth) were not paid in full, the
Administrative Agent will apply the amount so held in trust to pay the same
percentage of such Non-Contingent Secured Obligation as the percentage of
such other Secured Obligations theretofore paid pursuant to the same clause of
Section 10(a).  If (i) the holder of such
Contingent Secured Obligation shall advise the Administrative Agent that no
portion thereof remains in the category of a Contingent Secured Obligation and
(ii) the Administrative Agent still holds any amount held in trust pursuant to
this Section 10(b) in respect of such Contingent Secured Obligation (after
paying all amounts payable pursuant to the preceding sentence with respect to any
portions thereof that became Non-Contingent Secured Obligations), such
remaining amount will be applied by the Administrative Agent in the order of
priorities set forth in Section 10(a).

(c)   In making the payments and allocations
required by this Section, the Administrative Agent may rely upon information
supplied to it pursuant to Section 14(c). 
All distributions made by the Administrative Agent pursuant to this
Section shall be final (except in the event of manifest error) and the
Administrative Agent shall have no duty to inquire as to the application by any
Secured Party of any amount distributed to it.

Section 11.  [Intentionally Omitted.]

Section 12.  Authority to Administer
Collateral.  Each
Lien Grantor irrevocably appoints the Administrative Agent its true and lawful
attorney, with full power of substitution, in the name of such Lien Grantor,
any Secured Party or otherwise, for the sole use and benefit of the Secured
Parties, but at the Borrower’s expense, to the extent permitted by law to exercise,
at any time and from time to time while an Event of Default shall have occurred
and be continuing, all or any of the following powers with respect to all or
any of such Lien Grantor’s Collateral:

(a)       to demand, sue for, collect, receive and
give acquittance for any and all monies due or to become due upon or by virtue
thereof,

(b)      to settle, compromise, compound, prosecute
or defend any action or proceeding with respect thereto,

(c)       to sell, lease, license or otherwise
dispose of the same or the proceeds or avails thereof, as fully and effectually
as if the Administrative Agent were the absolute owner thereof, and

(d)      to extend the time of payment of any or
all thereof and to make any allowance or other adjustment with reference
thereto;

 15
 

 

 

provided that the Administrative Agent will give
the relevant Lien Grantor at least ten days’ prior written notice of the time
and place of any public sale thereof or the time after which any private sale
or other intended disposition thereof will be made. Any such notice shall (i) contain the information specified
in UCC Section 9-613, (ii)
be Authenticated and (iii) be
sent to the parties required to be notified pursuant to UCC Section 9-611(c);
provided that, if the
Administrative Agent fails to comply with this sentence in any respect, its
liability for such failure shall be limited to the liability (if any) imposed
on it as a matter of law under the UCC.

Section 13.  Limitation on Duty in Respect
of Collateral. 
Beyond the exercise of reasonable care in
the custody and preservation thereof, the Administrative Agent will have no
duty as to any Collateral in its possession or control or in the possession or
control of any sub-agent or bailee or any income therefrom or as to the
preservation of rights against prior parties or any other rights pertaining
thereto.  The Administrative Agent will
be deemed to have exercised reasonable care in the custody and preservation of
the Collateral in its possession or control if such Collateral is accorded
treatment substantially equal to that which it accords its own property, and
will not be liable or responsible for any loss or damage to any Collateral, or
for any diminution in the value thereof, by reason of any act or omission of
any sub-agent or bailee selected by the Administrative Agent in good faith,
except to the extent that such liability arises from the Administrative Agent’s
gross negligence or willful misconduct.

Section 14.  General Provisions Concerning the
Administrative Agent.  

(a)   The provisions of Article 8 of the Credit
Agreement shall inure to the benefit of the Administrative Agent, and shall be
binding upon all Lien Grantors and all Secured Parties, in connection with this
Agreement and the other Security Documents. 
Without limiting the generality of the foregoing, (i) the Administrative
Agent shall not be subject to any fiduciary or other implied duties, regardless
of whether an Event of Default has occurred and is continuing, (ii) the
Administrative Agent shall not have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers
expressly contemplated by the Security Documents that the Administrative Agent
is required in writing to exercise by the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02 of the Credit Agreement), and (iii)
except as expressly set forth in the Loan Documents, the Administrative Agent
shall not have any duty to disclose, and shall not be liable for any failure to
disclose, any information relating to the Borrower or any of the Guarantors
that is communicated to or obtained by the bank serving as Administrative Agent
or any of its Affiliates in any capacity. 
The Administrative Agent shall not be responsible for the existence,
genuineness or value of any Collateral or for the validity, perfection,
priority or enforceability of any Transaction Lien, whether impaired by
operation

 16
 

 

of law or by
reason of any action or omission to act on its part under the Security
Documents. The Administrative Agent shall be deemed not to have knowledge of
any Event of Default unless and until written notice thereof is given to the
Administrative Agent by the Borrower or a Secured Party.

(b)   Sub-Agents and Related Parties.  The
Administrative Agent may perform any of its duties and exercise any of its
rights and powers through one or more sub-agents appointed by it.  The Administrative Agent and any such
sub-agent may perform any of its duties and exercise any of its rights and
powers through its Related Parties.  The
exculpatory provisions of Section 13 and this Section shall apply to any such
sub-agent and to the Related Parties of the Administrative Agent and any such
sub-agent.

(c)   Information as to Secured Obligations and Actions by Secured
Parties.  For all purposes of
the Security Documents, including determining the amounts of the Secured
Obligations and whether a Secured Obligation is a Contingent Secured Obligation
or not, or whether any action has been taken under any Secured Agreement, the
Administrative Agent will be entitled to rely on information from (i) its own records for information
as to the Lender Parties, their Secured Obligations and actions taken by them, (ii) any Secured Party (or any
trustee, agent or similar representative) for information as to its Secured
Obligations and actions taken by it, to the extent that the Administrative
Agent has not obtained such information from its own records, and (iii) the Borrower, to the extent
that the Administrative Agent has not obtained information from the foregoing
sources.

(d)   Refusal to Act.  The Administrative Agent may refuse to act on
any notice, consent, direction or instruction from any Secured Parties or any
agent, trustee or similar representative thereof that, in the Administrative
Agent’s opinion, (i) is
contrary to law or the provisions of any Security Document, (ii) may expose the Administrative
Agent to liability (unless the Administrative Agent shall have been
indemnified, to its reasonable satisfaction, for such liability by the Secured
Parties that gave such notice, consent, direction or instruction) or (iii) is unduly prejudicial to
Secured Parties not joining in such notice, consent, direction or instruction.

(e)   Copies of
Certain Notices.  Within two
Business Days after it receives or sends any notice referred to in this
subsection, the Administrative Agent shall send to the Lenders and each Secured
Party Requesting Notice, copies of any notice given by the Administrative Agent
to any Lien Grantor, or received by it from any Lien Grantor, pursuant to
Section 9, 10, 12 or 15.

 17
 

 

 

Section 15.  Termination of Transaction
Liens; Release of Collateral.

(a)   The Transaction Liens granted by each
Guarantor shall terminate upon the earlier of (i) the release of its
Transaction Guarantee pursuant to Section 2(c) of the Guarantee Agreement and
(ii) the satisfaction of all of the Ratings Release Conditions (subject to
reinstatement as set forth in Section 5.12 of the Credit Agreement).

(b)   The Transaction Liens granted by the Borrower
shall terminate upon the earlier of (i) the satisfaction of all of the Release
Conditions and (ii) the satisfaction of all of the Ratings Release Conditions
(subject to reinstatement as set forth in Section 5.12 of the Credit
Agreement).

(c)   At any time before the Transaction Liens
granted by the Borrower terminate, the Administrative Agent may, at the written
request of the Borrower, (i)
release any Collateral (but not all or substantially all the Collateral) with
the prior written consent of the Required Lenders or (ii) release all or substantially all the Collateral with the
prior written consent of all Lenders.

(d)   The Administrative Agent shall be fully
protected in relying upon a certificate of a Financial Officer of the Borrower
as to whether all of the Ratings Release Conditions are satisfied.  Upon any termination of a Transaction Lien or
release of Collateral, the Administrative Agent will, at the expense of the
relevant Lien Grantor, execute and deliver to such Lien Grantor such documents
as such Lien Grantor shall reasonably request to evidence the termination of
such Transaction Lien or the release of such Collateral, as the case may be.

(e)   Notwithstanding the foregoing, at any time
that Section 5.12(c) of the Credit Agreement is applicable, the Lien Grantors
shall take all actions as shall be necessary to cause the Minimum Stock
Collateral Condition to promptly be satisfied.

Section 16.  Additional Transaction Lien
Grantors.  Any
Subsidiary may become a party hereto by signing and delivering to the
Administrative Agent a Pledge Agreement Supplement, whereupon such Subsidiary
shall become a “Lien Grantor” as defined herein.

Section 17.  Notices. 
Each notice, request or other communication given to
any party hereunder shall be given in accordance with Section 9.01 of the
Credit Agreement, and in the case of any such notice, request or other
communication to a Lien Grantor other than the Borrower, shall be given to it
in care of the Borrower.

Section 18.  No Implied Waivers; Remedies Not
Exclusive.  No failure by the
Administrative Agent or any Secured Party to exercise, and no delay in
exercising and no course of dealing with respect to, any right or remedy under
any 

 18
 

 

Loan Document shall operate as a waiver thereof; nor
shall any single or partial exercise by the Administrative Agent or any Secured
Party of any right or remedy under any Loan Document preclude any other or
further exercise thereof or the exercise of any other right or remedy.  The rights and remedies specified in the Loan
Documents are cumulative and are not exclusive of any other rights or remedies
provided by law.

Section 19.  Successors and Assigns.  This Agreement is for the benefit
of the Administrative Agent and the Secured Parties.  If all or any part of any Secured Party’s
interest in any Secured Obligation is assigned or otherwise transferred, the
transferor’s rights hereunder, to the extent applicable to the obligation so
transferred, shall be automatically transferred with such obligation.  This Agreement shall be binding on the Lien
Grantors and their respective successors and assigns.

Section 20.  Amendments and Waivers.  Neither this Agreement nor any
provision hereof may be waived, amended, modified or terminated except pursuant
to an agreement or agreements in writing entered into by the Administrative
Agent, with the consent of such Lenders as are required to consent thereto
under Section 9.02 of the Credit Agreement. 
No such waiver, amendment or modification shall (i) be binding upon any Lien
Grantor, except with its written consent, or (ii) affect the rights of a
Secured Party (other than a Lender) hereunder more adversely than it affects
the comparable rights of the Lenders hereunder, without the consent of such
Secured Party.

Section
21.  Governing Law; Jurisdiction; Consent to
Service of Process.  (a) This Agreement shall be construed
in accordance with and governed by the laws of the State of New York, except as
otherwise required by mandatory provisions of law and except to the extent that
remedies provided by the laws of any jurisdiction other than the State of New
York are governed by the laws of such jurisdiction.

(b)   Each of the Lien Grantors irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction
of the Supreme Court of the State of New York sitting in New York County and of
the United States District Court of the Southern District of New York, and any
relevant appellate court, in any action or proceeding arising out of or
relating to any Loan Document, or for recognition or enforcement of any
judgment, and each party hereto irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in such New York State court or, to the extent permitted by law, in such
Federal court.  Each party hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.  Nothing in any
Loan Document shall affect any right

 19
 

 

that any Secured Party may otherwise have to bring any
action or proceeding relating to any Loan Document against any Lien Grantor or
its properties in the courts of any jurisdiction. 

(c)   Each of the Lien Grantors irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection that it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement in
any court referred to in subsection (b) of this Section.  Each party hereto irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of any such suit, action or proceeding in any such court.

(d)   Each party hereto irrevocably consents to
service of process in the manner provided for notices in Section 9.01 of the
Credit Agreement.  Nothing in any Loan
Document will affect the right of any party hereto to serve process in any
other manner permitted by law.

Section 22.  Waiver of Jury Trial.  EACH PARTY HERETO WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY
LOAN DOCUMENT OR ANY TRANSACTION CONTEMPLATED THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 23.  Appointment of Agent for Service of
Process.  (a)  Each of the Lien Grantors hereby irrevocably designates, appoints,
authorizes and empowers as its agent for service of process, CT Corporation
System, at its offices currently located at 111 Eighth Avenue, 13th Floor, New
York, NY 10011 (the “Process Agent”),
to accept and acknowledge for and on behalf of such Lien Grantor service of any
and all process, notices or other documents that may be served in any suit,
action or proceeding relating hereto in any New York State or Federal court
sitting in the State of New York.  With
respect to each Lien Grantor, such designation and appointment shall be
irrevocable until all of its Transaction Liens have been released pursuant to
Section 15.  Each of the Lien Grantors
covenants and agrees that it shall take any and all reasonable action,
including the execution and filing of any and all documents, that may be
necessary to continue the 

 20
 

 

foregoing
designations and appointments in full force and effect and to cause the Process
Agent to continue to act in such capacity.

(b)   Each of the Lien Grantors consents to process being served in any
suit, action or proceeding of the nature referred to in Section 21 by serving a
copy thereof upon the Process Agent. 
Without prejudice to the foregoing, the Secured Parties and the
Administrative Agent agree that to the extent lawful and possible, written
notice of said service upon the Process Agent shall also be mailed by
registered or certified airmail, postage prepaid, return receipt requested, to
each Lien Grantor, care of the Borrower, at the Borrower’s address specified in
or pursuant to Section 9.01 of the Credit Agreement or to any other address of
which such Lien Grantor shall have given written notice to the Administrative
Agent.  If said service upon the Process
Agent shall not be possible or shall otherwise be impractical after reasonable
efforts to effect the same, each of the Lien Grantors consents to process being
served in any suit, action or proceeding of the nature referred to in Section
21 by the mailing of a copy thereof by registered or certified airmail, postage
prepaid, return receipt requested, to such Lien Grantor at the address of the
Borrower specified in or pursuant to Section 9.01 of the Credit Agreement or to
any other address of which such Lien Grantor shall have given written notice to
the Administrative Agent, which service shall be effective 14 days after
deposit in the United States Postal Service. Each of the Lien Grantors agrees
that such service (i) shall be deemed in every respect effective service of
process upon itself in any such suit, action or proceeding and (ii) shall to
the fullest extent permitted by law, be taken and held to be valid personal
service upon and personal delivery to itself.

(c)   Nothing in this Section shall affect the
right of any party hereto to serve process in any manner permitted by law, or
limit any right that any party hereto may have to bring proceedings against any
other party hereto in the courts of any jurisdiction or to enforce in any
lawful manner a judgment obtained in one jurisdiction in any other
jurisdiction.

Section 24.  Waiver of Immunity.  To the extent that any Lien
Grantor has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process (whether through service or notice, attachment
prior to judgment, attachment in aid or execution, or otherwise) with respect
to itself or its property, such Lien Grantor hereby irrevocably waives such
immunity in respect of its obligations under the Secured Agreements to the
extent permitted by applicable law and, without limiting the generality of the
foregoing, agrees that the waivers set forth in this Section shall have effect
to the fullest extent permitted under the Foreign Sovereign Immunities Act of
1976 of the United States of America and are intended to be irrevocable for
purposes of such Act.

 21
 

 

 

Section 25.  Judgment Currency.  (a) If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum due hereunder
in dollars into another currency, the parties hereto agree, to the fullest
extent that they may legally and effectively do so, that the rate of exchange
used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase dollars with such other currency in New
York, New York, on the Business Day immediately preceding the day on which
final judgment is given.

(b)   The obligation of each Lien Grantor in
respect of any sum due to any Secured Party hereunder in dollars shall, to the
extent permitted by applicable law, notwithstanding any judgment in a currency
other than dollars, be discharged only to the extent that on the Business Day
following receipt of any sum adjudged to be so due in the judgment currency
such Secured Party may in accordance with normal banking procedures purchase
dollars in the amount originally due to it with the judgment currency.  If the amount of dollars so purchased is less
than the sum originally due to such Secured Party, each Lien Grantor agrees, as
a separate obligation and notwithstanding any such judgment, to indemnify such
Secured Party against the resulting loss; and if the amount of dollars so
purchased is greater than the sum originally due to such Secured Party, such
Secured Party agrees to repay such excess.

Section 26.  Use of English Language.  Any translation of this Agreement into
another language shall have no interpretive effect. All documents or notices to
be delivered pursuant to or in connection with this Agreement shall be in the
English language or, if any such document or notice is not in the English
language, accompanied by an English translation thereof, and the English
language version of any such document or notice shall control for purposes hereof.

Section 27.  Severability. 
If any provision of any Loan Document is invalid, illegal or
unenforceable in any jurisdiction then, to the fullest extent permitted by law,
(i) such provision shall, as to such jurisdiction, be ineffective to the extent
(but only to the extent) of such invalidity, illegality or unenforceability,
(ii) the other provisions of the Loan Documents shall remain in full force and
effect in such jurisdiction and shall be liberally construed in favor of the
Administrative Agent and the Secured Parties in order to carry out the
intentions of the parties thereto as nearly as may be possible and (iii) the
invalidity, illegality or unenforceability of any such provision in any
jurisdiction shall not affect the validity, legality or enforceability of such
provision in any other jurisdiction.

Section 28.  Counterparts, Integration,
Effectiveness.  This Agreement
may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.  This Agreement, the other Loan

 22
 

 

Documents and any separate letter agreements with
respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof.  Except as
provided in Section 4.01 of the Credit Agreement, this Agreement (i) will become
effective when the Administrative Agent shall have signed this Agreement and
received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto and (ii) thereafter will be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.  Delivery of an executed
counterpart of a signature page of this Agreement by facsimile will be
effective as delivery of a manually executed counterpart of this Agreement.

 23

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

	
  

  	
   

  	
  MARVELL TECHNOLOGY GROUP LTD., 

    as Borrower and Lien Grantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ George Hervey

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  George Hervey

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  V.P. and CFO

  
								

 

	
  

  	
   

  	
  MARVELL TECHNOLOGY, INC., 

    as Guarantor and Lien Grantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ George Hervey

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  George Hervey

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  V.P. and CFO

  

 

	
  

  	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH, 

    as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Phillip Ho

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Phillip Ho

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Phillip Ho

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
  Phillip Ho

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
  Director

  

 

SCHEDULE 1

SPECIFIED EQUITY INTERESTS 

OWNED BY ORIGINAL LIEN GRANTORS

(as of the Effective Date)

	
  Issuer

  	
   

  	
  Jurisdiction

  of

  Organization

  	
   

  	
  Owner of

  Equity Interest

  	
   

  	
  Percentage

  Owned

  	
   

  	
  Number of

  Shares or Units

  	
   

  
	
  Marvell Technology,
  Inc.

  	
   

  	
  Delaware

  	
   

  	
  Marvell

  Technology

  Group Ltd.

  	
   

  	
  100

  	
  %

  	
  1,000

  	
   

  
	
  Marvell
  Semiconductor, Inc.

  	
   

  	
  California

  	
   

  	
  Marvell

  Technology, Inc.

  	
   

  	
  83

  	
  %

  	
  6,827

  	
   

  

 

 S-1-1
 

 

SCHEDULE 2

UCC INFORMATION

In order to perfect the
Transaction Liens granted by a Lien Grantor, a duly completed financing
statement on Form UCC-1, with the collateral described as set forth below,
should be on file in the office set forth below opposite such Lien Grantor.

	
  Lien Grantor

  	
   

  	
  Office(1)

  	
   

  
	
  Marvell Technology
  Group Ltd.

  	
   

  	
  Bermuda

  	
   

  
	
  Marvell Technology, Inc.

  	
   

  	
  Delaware

  	
   

  

 

 

DESCRIPTION OF COLLATERAL

All shares of capital stock, membership interests, partnership
interests and other securities or equity interests now owned or hereafter
acquired by the Debtor in [specify entity or entities whose Equity Interests
are being pledged] and all rights and privileges with respect thereto, and all
dividends and other payments and distributions with respect thereto, and all
proceeds of the foregoing.

 

(1)  Insert Lien Grantor’s
“location” determined as provided in UCC Section 9-307.

 S-1-2

 

 

EXHIBIT A

to US Pledge Agreement

PLEDGE AGREEMENT SUPPLEMENT

PLEDGE
AGREEMENT SUPPLEMENT dated as of _______, ____, between [NAME OF LIEN GRANTOR]
(the “Lien Grantor”) and CREDIT
SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent.

WHEREAS,
Marvell Technology Group Ltd. (the “Borrower”), the
lenders party thereto and Credit Suisse, Cayman Islands Branch, as
Administrative Agent (the “Administrative Agent”),
are parties to a Credit Agreement dated as of November 8, 2006 (as heretofore
amended and/or supplemented, the “Credit
Agreement”);

WHEREAS,
the Borrower, the Guarantors and the Administrative Agent, are parties to a
Guarantee Agreement dated as of November 8, 2006 (as heretofore amended and/or
supplemented, the “Guarantee Agreement”)
pursuant to which the Guarantors party thereto have guaranteed certain
obligations of the Borrower, including under the Credit Agreement; 

WHEREAS,
the Borrower, the Guarantors party thereto and the Administrative Agent are
parties to a US Pledge Agreement dated as of November 8, 2006 (as heretofore
amended and/or supplemented, the “Pledge
Agreement”) under which the Borrower and the Guarantors secure
certain obligations (the “Secured Obligations”);

WHEREAS,
[name of Lien Grantor] has become [is] a party to the Guarantee Agreement as a
Guarantor;

WHEREAS,
[name of Lien Grantor] is willing to become [is] a party to the Pledge
Agreement as a Lien Grantor thereunder; and 

WHEREAS,
terms defined in the Pledge Agreement (or whose definitions are incorporated by
reference in Section 1 of the Pledge Agreement) and not otherwise defined
herein have, as used herein, the respective meanings provided for therein; 

 A-1
 

 

 

NOW,
THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 

1.     Grant of Transaction Liens. 
(a) In order to secure [its Transaction Guarantee](2) [the Secured Obligations](3), the Lien
Grantor grants to the Administrative Agent for the benefit of the Secured Parties
a continuing security interest in all the following property of the Lien
Grantor, whether now owned or existing or hereafter acquired or arising and
regardless of where located (the “New
Collateral”):

[describe property being
added to the Collateral]

 

(b)   The
foregoing Transaction Liens are granted as security only and shall not subject
the Administrative Agent or any other Secured Party to, or transfer or in any
way affect or modify, any obligation or liability of the Lien Grantor with
respect to any of the New Collateral or any transaction in connection
therewith.

2.     Delivery of Collateral. 
Concurrently with delivering this Pledge Agreement Supplement to the
Administrative Agent, the Lien Grantor is complying with the provisions of
Section 5 of the Pledge Agreement with respect to Specified Equity Interests,
in each case if and to the extent included in the New Collateral at such time.

3.     Party to Pledge Agreement. 
Upon delivering this Pledge Agreement Supplement to the Administrative
Agent, the Lien Grantor will become a party to the Pledge Agreement and will
thereafter have all the rights and obligations of a Lien Grantor thereunder and
be bound by all the provisions thereof as fully as if the Lien Grantor were one
of the original parties thereto.(4)

(2)  Delete
bracketed words if the Lien Grantor is the Borrower.

(3)  Delete
bracketed words if the Lien Grantor is a Guarantor.

(4)  Delete
Section 4 if the Lien Grantor is already a party to the Pledge Agreement.

4.     Representations and Warranties.  (a) The Lien Grantor is duly organized,
validly existing and in good standing under the laws of [jurisdiction of
organization].

 

 A-2
 

 

 

(b)   Each of the
representations and warranties set forth in the Pledge Agreement and the Credit
Agreement is true as applied to the Lien Grantor and the New Collateral.  For purposes of the foregoing sentence,
references in said agreements to a “Lien Grantor”, a “Subsidiary” or a “Credit
Party” shall be deemed to refer to the Lien Grantor, references to Schedules to
the Pledge Agreement shall be deemed to refer to the corresponding Schedules to
this Pledge Agreement Supplement, references to “Collateral” shall be deemed to
refer to the New Collateral, and references to the “Closing Date” or the
“Effective Date” shall be deemed to refer to the date on which the Lien Grantor
signs and delivers this Pledge Agreement Supplement.

5.     [Compliance
with Foreign Law.  The Lien
Grantor represents that it has taken, and agrees that it will continue to take,
all actions required under the laws (including the conflict of laws rules) of
its jurisdiction of organization to ensure that the Transaction Liens on the
New Collateral rank prior to all Liens and rights of others therein.(5)]

6.     Governing Law.  This
Pledge Agreement Supplement shall be construed in accordance with and governed
by the laws of the State of New York.

(5) 
Include Section 6 if the Lien Grantor is organized under the laws of a
jurisdiction outside the United States.

 A-3
 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement
Supplement to be duly executed by their respective authorized officers as of
the day and year first above written.

	
  

  	
   

  	
  [NAME OF LIEN GRANTOR]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as
  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  

 

 A-4
 

 

Schedule 1

to Pledge Agreement

Supplement

SPECIFIED EQUITY
INTERESTS 

OWNED BY LIEN GRANTOR

	
  Issuer

  	
   

  	
  Jurisdiction

  of

  Organization

  	
   

  	
  Percentage

  Owned

  	
   

  	
  Number of

  Shares or Units

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 A-5
 

 

Schedule 2

to Pledge Agreement

Supplement

UCC INFORMATION

In order to perfect the
Transaction Liens granted by a Lien Grantor, a duly completed financing
statement on Form UCC-1, with the collateral described as set forth below,
should be on file in the office set forth below opposite such Lien Guarantor.

 

	
  Lien Grantor

  	
   

  	
  Office(6)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

DESCRIPTION OF COLLATERAL

All shares of capital stock, membership interests, partnership
interests and other securities or equity interests now owned or hereafter
acquired by the Debtor in the following entities [specify entity or entities
whose Equity Interests are being pledged], and all rights and privileges with
respect thereto, and all dividends and other payments and distributions with
respect thereto, and all proceeds of the foregoing.

(6)  Insert Lien Grantor’s “location” determined
as provided in UCC Section 9-307.

 

 

 

 A-6

 

 

EXHIBIT B

to US Pledge Agreement

ISSUER CONTROL AGREEMENT

ISSUER
CONTROL AGREEMENT dated as of [date] among _____________ (the “Lien Grantor”), CREDIT SUISSE, CAYMAN
ISLANDS BRANCH, as Administrative Agent (the “Secured
Party”), and _________ (the “Issuer”).  All references herein to the “UCC” refer to the Uniform Commercial Code
as in effect from time to time in [Issuer’s jurisdiction of incorporation].

W I T N E S S E T H :

WHEREAS,
the Lien Grantor is the registered holder of [specify Pledged Uncertificated
Securities issued by the Issuer] issued by the Issuer (the “Securities”); 

WHEREAS,
pursuant to a US Pledge Agreement dated as of November 8, 2006 (as such
agreement may be amended and/or supplemented from time to time, the “Pledge Agreement”), the Lien Grantor has
granted to the Secured Party a continuing security interest (the “Transaction Lien”) in all right, title and
interest of the Lien Grantor in, to and under the Securities, whether now
existing or hereafter arising; and

WHEREAS,
the parties hereto are entering into this Agreement in order to perfect the
Transaction Lien on the Securities; 

NOW,
THEREFORE, the parties hereto agree as follows:

Section 1.  Nature of Securities.  The
Issuer confirms that (i) the Securities are “uncertificated securities” (as
defined in Section 8-102 of the UCC) and (ii) the Lien Grantor is
registered on the books of the Issuer as the registered holder of the
Securities.

Section 2.  Instructions.  The
Issuer agrees to comply with any “instruction” (as defined in Section 8-102
of the UCC) originated by the Secured Party and relating to the Securities
without further consent by the Lien Grantor or any other person.  The Lien Grantor consents to the foregoing
agreement by the Issuer.

Section 3.  Waiver of Lien; Waiver of
Set-off. 
The Issuer waives any security interest,
lien or right of set-off that it may now have or hereafter acquire 

 B-1
 

 

in or with respect to the Securities.  The Issuer’s obligations in respect of the
Securities will not be subject to deduction, set-off or any other right
in favor of any person other than the Secured Party.

Section 4.  Choice of Law.  This
Agreement shall be governed by the laws of [Issuer’s jurisdiction of
incorporation].

Section 5.  Conflict with Other
Agreements. 
There is no agreement (except this
Agreement) between the Issuer and the Lien Grantor with respect to the
Securities
except for [identify any existing other agreements] (the “Existing
Other Agreements”).  In the
event of any conflict between this Agreement (or any portion hereof) and any
other agreement (including any Existing Other Agreement) between the Issuer and
the Lien Grantor with respect to the Securities, whether now existing or
hereafter entered into, the terms of this Agreement shall prevail.

Section 6.  Amendments.  No
amendment or modification of this Agreement or waiver of any right hereunder
shall be binding on any party hereto unless it is in writing and is signed by
all the parties hereto.

Section 7.  Notice of Adverse Claims.  Except
for the claims and interests of the Secured Party and the Lien Grantor in the
Securities, the Issuer does not know of any claim to, or interest in, the
Securities.  If any person asserts any
lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
attachment, execution or similar process) against the Securities, the Issuer
will promptly notify the Secured Party and the Lien Grantor thereof.

Section 8.  Maintenance of Securities.  In
addition to, and not in lieu of, the obligation of the Issuer to honor
instructions as agreed in Section 2 hereof, the Issuer agrees as follows: 

(i)    Lien Grantor Instructions; Notice of Exclusive Control.  So long as the Issuer has not received a
Notice of Exclusive Control (as defined below), the Issuer may comply with
instructions of the Lien Grantor or any duly authorized agent of the Lien
Grantor in respect of the Securities. 
After the Issuer receives a written notice from the Secured Party that
it is exercising exclusive control over the Securities (a “Notice of Exclusive Control”), the Issuer
will cease complying with instructions of the Lien Grantor or any of its
agents. 

(ii)   Non-Cash Dividends and Distributions.  After the Issuer receives a Notice of
Exclusive Control, the Issuer shall deliver to the Secured Party all dividends,
interest and other distributions paid or made upon or with respect to the
Securities.

 B-2
 

 

 

(iii)  Voting Rights.  Until
the Issuer receives a Notice of Exclusive Control, the Lien Grantor shall be
entitled to direct the Issuer with respect to voting the Securities.

(iv)  Statements and Confirmations.  The Issuer will promptly send copies of all
statements and other correspondence concerning the Securities simultaneously to
each of the Lien Grantor and the Secured Party at their respective addresses
specified in Section 11 hereof.

(v)   Tax Reporting.  All
items of income, gain, expense and loss recognized in respect of the Securities
shall be reported to the Internal Revenue Service and all state and local
taxing authorities under the name and taxpayer identification number of the
Lien Grantor.

Section 9.  Representations,
Warranties and Covenants of the Issuer.  The
Issuer makes the following representations, warranties and covenants: 

(i)    This Agreement is a valid
and binding agreement of the Issuer enforceable in accordance with its terms.

(ii)   The Issuer has not entered
into, and until the termination of this Agreement will not enter into, any
agreement with any other person relating to the Securities pursuant to which it
has agreed, or will agree, to comply with instructions (as defined in Section 8-102
of the UCC) of such person.  The Issuer
has not entered into any other agreement with the Lien Grantor or the Secured
Party purporting to limit or condition the obligation of the Issuer to comply
with instructions as agreed in Section 2 hereof.

Section 10.  Successors.  This
Agreement shall be binding upon, and shall inure to the benefit of, the parties
hereto and their respective successors and assigns.

Section 11.  Notices. 
Each
notice, request or other communication given to any party hereunder shall be in
writing (which term includes facsimile or other electronic transmission) and
shall be effective (i) when delivered to such party at its address specified
below, (ii) when sent to such party by facsimile or other electronic transmission,
addressed to it at its facsimile number or electronic address specified below,
and such party sends back an electronic confirmation of receipt or (iii) ten
days after being sent to such party by certified or registered United States
mail, addressed to it at its address specified below, with first class or
airmail postage prepaid:

Lien
Grantor: [address]

 B-3
 

 

 

Secured
Party: [address]

Issuer:
[address]

Any party may change its
address, facsimile number and/or e-mail address for purposes of this Section by
giving notice of such change to the other parties in the manner specified
above.

Section 12.  Termination.  The
rights and powers granted herein to the Secured Party (i) have been granted in
order to perfect the Transaction Lien, (ii) are powers coupled with an interest
and (iii) will not be affected by any bankruptcy of the Lien Grantor or any
lapse of time.  The obligations of the
Issuer hereunder shall continue in effect until the Secured Party has notified
the Issuer in writing that the Transaction Lien has been terminated pursuant to
the Pledge Agreement.

Section 13.  Counterparts.  This
Agreement may be executed in any number of counterparts, all of which shall
constitute one and the same instrument, and any party hereto may execute this
Agreement by signing and delivering one or more counterparts.

	
  

  	
   

  	
  [NAME OF LIEN GRANTOR]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as
  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  

 

 

 B-4
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NAME OF ISSUER]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  

 

 B-5
 

 

Exhibit A

[Letterhead of
Credit Suisse, Cayman Islands Branch]

[Date]

[Name and Address of
Issuer]

Attention: ________________________

Re:  Notice of Exclusive
Control

Ladies and Gentlemen:

As
referenced in the Issuer Control Agreement dated as of ______, ____ among [name
of Lien Grantor], us and you (a copy of which is attached), we notify you that
we will hereafter exercise exclusive control over [specify Pledged
Uncertificated Securities] registered in the name of [name of Lien Grantor]
(the “Securities”).  You are instructed not to accept any
directions or instructions with respect to the Securities from any person other
than the undersigned unless otherwise ordered by a court of competent
jurisdiction.

You
are instructed to deliver a copy of this notice by facsimile transmission to
[name of Lien Grantor].

Very truly yours,

	
  

  	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as
  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  

 

cc: [name of Lien
Grantor]

 B-6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]