Document:

exv10w19

 

Exhibit-10.19

EQUITY INCENTIVE PLAN

FOR SENIOR MANAGEMENT EMPLOYEES OF

AVAGO TECHNOLOGIES LIMITED AND SUBSIDIARIES

(AMENDED AND RESTATED EFFECTIVE AS OF APRIL 14, 2006)

     1. Purpose of Plan

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

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

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

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

     2. Definitions

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

     (a) “Affiliate” shall mean (i) with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with,
such Person, and (ii) with respect to the Company, also any entity designated by the
Board of Directors of the Company in which the Company or one of its Affiliates has
an interest, (iii) with respect to Kohlberg Kravis Roberts & Co., L.P. (“KKR”), any
Affiliate of any partner of KKR and (iv) with respect to Silver Lake Partners LLC
(“SLP”), any Affiliate of any partner of SLP. For purposes of this Plan, “Person”
means an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture,
governmental authority or other entity of whatever nature, and “control” shall have
the meaning given such term under Rule 405 of the Securities Act.

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

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

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

 

 

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

     (e) “Cause” shall mean (i) the Participant’s willful refusal to perform in any
material respect his lawful duties or responsibilities for the Company or its
Subsidiaries or willful disregard in any material respect of any financial or other
budgetary limitations established in good faith by the Board of Directors or the
board of directors of any Subsidiary; or (ii) the engaging by the Participant in
conduct that causes material and demonstrable injury, monetarily or otherwise, to
the Company or any of its Subsidiaries, including, but not limited to,
misappropriation or conversion of assets of the Company or its Subsidiaries (other
than non-material assets); or (iii) the Participant’s conviction of or entry of a
plea of nolo contendere to a felony. No act or failure to act by the Participant
shall be deemed “willful” if done, or omitted to be done, by him in good faith and
with the reasonable belief that his action or omission was in the best interest of
the Company or its Subsidiaries or consistent with Company policies or the directive
of the Board of Directors.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (u) “Public Offering” shall mean a public offering and sale of Shares by the
Company (or any successor) pursuant to an effective registration statement under the
Securities Act and/or in compliance with equivalent securities laws of a
jurisdiction outside of the U.S. (other than a registration statement on Form S-8,
S-4, Form F-4 or any other similar form).

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

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

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

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

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

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

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

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

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

     3. Administration of Plan

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

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

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

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final and binding upon
all Participants, the Company and all other interested persons. No member of the
Committee shall be personally liable for any action, determination or interpretation
made in good faith with respect to the Plan or the Grants, and all members of the
Committee shall be fully protected by the Company with respect to any such action,
determination or interpretation.

     4. Eligibility

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

     5. Option Grants

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

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Plan, provided that such cashless exercise
would not, as determined by the Committee in its sole discretion, (i) cause the Company or
its Subsidiaries to breach any loan, guarantee or other agreement under which the Company
or any Subsidiary of the Company has borrowed money, (ii) result in a violation or in
adverse consequences under Section 409A of the Code or the regulations promulgated
thereunder, (iii) be otherwise prohibited by the Code or the regulations promulgated
thereunder or (iv) result in negative accounting treatment under Generally Accepted
Accounting Principles (“GAAP”).

     6. Share Purchase Rights

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

     7. Limitations and Conditions

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

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

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

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

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

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

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

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

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

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

     8. Put and Call Rights

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

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

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

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

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

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

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

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

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     The “Percentage” shall be determined as follows:

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

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

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

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

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

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

     9. Company’s Right of First Refusal. During the period commencing immediately following
the fifth anniversary of the Grant Date and continuing through the effective date of a Qualified
Public Offering, the Company or its assignee(s) shall have a right of first refusal to purchase, on
the terms and conditions set forth in this Section 9 (the “Right of First Refusal”), any Shares
held

12

 

by the Participant or any transferee thereof (either being sometimes referred to herein as the
“Holder”) to the extent these Shares are permitted to be transferred in accordance with the terms
of this Plan before these Shares may be Transferred (including transfer by gift or operation of
law) by the Participant. For purposes of this Plan, a “Qualified Public Offering” means the first
Public Offering which results in gross proceeds in excess of $250,000,000.

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

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

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

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

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

13

 

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

     10. Share Transfer Restrictions

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

     11.  “Bring-Along” Right

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

14

 

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

     12. Lock-Up Period

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

     13. Expiration of Certain Provisions

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

     14. Transfers and Leaves of Absence

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

     15. Adjustments

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

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

          In its sole discretion, and on such terms and conditions as it deems appropriate, coincident
with or after the grant of any Share Option, the Committee may provide that such Share Option
cannot be exercised after the consummation of the merger or consolidation of the Company into
another corporation, the exchange of all or substantially all of the assets of the

15

 

Company for the
securities of another corporation, the acquisition by another corporation of 80% or more of the
Company’s then outstanding voting shares or the recapitalization, reclassification, liquidation or
dissolution of the Company, or other adjustment or event which results in Shares being exchanged
for or converted into cash, securities or other property, and if the Committee so provides, it
shall, on such terms and conditions as it deems appropriate in its absolute discretion, also
provide, either by the terms of such Share Option or by a resolution adopted prior to the
consummation of such merger, consolidation, exchange, acquisition, recapitalization,
reclassification, liquidation or dissolution, that, for some period of time prior to the
consummation of such transaction or event, such Share Option shall be exercisable as to all shares
subject thereto, notwithstanding anything to the contrary herein (but subject to the provisions of
Section 7(b)) and that, upon the consummation of such event, such Share Option shall terminate and
be of no further force or effect; provided, however, that the Committee may also provide, in its
absolute discretion, that even if the Share Option shall remain exercisable after any such event,
from and after such event, any such Share Option shall be exercisable only for the kind and amount
of cash, securities and/or other property, or the cash equivalent thereof (net of any applicable
exercise price), receivable as a result of such event by the holder of a number of shares for which
such Share Option could have been exercised immediately prior to such event.

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

     17. Amendment and Termination

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

     18. Withholding Taxes

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

     19. Registration

          If the Company shall have filed a registration statement pursuant to the requirements of
Section 12 of the Exchange Act, or engaged in a Public Offering, (i) the Company shall use

16

 

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

     20. Section 409A.

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

     21. Grant Agreement

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

     22. Individuals Subject to Non-Singapore Jurisdictions

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

     23. Shareholder Meeting Notice Period

          As permitted by Section 177(3) of the Singapore Companies Act, the Participant hereby agrees
to shorter notice than required by Section 177(2) of the Singapore Companies Act with respect to
any meeting of the Company, other than the Company’s annual general meeting, which shorter notice
may be as little as immediately prior to the commencement of such meeting.

17

 

To such end, the
Participant hereby irrevocably appoints and constitutes LU, and its assigns, as the Participant’s
true and lawful attorney, in the Participant’s name, place and stead, to make, execute and
acknowledge documents for the limited purpose of agreeing to such shorter notice. The Participant
agrees to provide the Company with any documentation reasonably requested by the Company to give
effect to the agreements in the two immediately preceding sentences.

     24. Effective Date and Termination Dates

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

     25. Shareholder Approval

          The amendment and restatement of the Plan will be submitted for the approval of the Company’s
shareholders within twelve (12) months after the date of the Board’s adoption of the amendment and
restatement of the Plan. Share Options and Share Purchase Rights may be granted prior to and
without such shareholder approval, provided that Share Options granted to
Non-Employee Directors shall not be exercisable and shall not vest prior to the time when the
amended and restated Plan is approved by the shareholders, and provided further that if such
approval has not been obtained at the end of said twelve-month period, any Share Options granted to
Non-Employee Directors under the Plan shall thereupon be canceled and become null and void and no
further grants to Non-Employee Directors shall be made under the Plan and the Share Options granted
under the Plan shall be canceled and become null and void in reverse order based on Grant Date
until the number of Shares subject to Grants under the Plan and the Executive Plan is less than or
equal to 21,000,000 and no further Grants shall be made under the Plan to the extent such Grants
cause the number of Shares subject to Grants under the Plan and the Executive Plan to exceed
21,000,000.

18exv10w20

 

Exhibit-10.20

 

 

MANAGEMENT SHAREHOLDERS AGREEMENT

by and among

Avago Technologies Limited,

Bali Investments S.à.r.l., a Luxembourg company

and

Name

Dated as of [___, 200_]

 

 

 

 

          This Management Shareholders Agreement (this “Agreement”) is entered into effective as
of [___, 200_] by and between Avago Technologies Limited, (the “Company”), Bali
Investments S.a.r.l., a Luxembourg company (“Luxco”) and Name (the “Purchaser”)
(being hereinafter collectively referred to as the “Parties”).

RECITALS

          Pursuant to the terms of the Equity Incentive Plan for Executive Employees of Avago
Technologies Limited and Subsidiaries, as the same may be amended from time to time (the
“Equity Plan”), the Company is granting options to purchase ordinary shares (the
“Shares”) in the Company to certain employees of the Company or one of its Subsidiaries,
including the Purchaser. In addition, Purchaser intends to purchase Shares. This Agreement is one
of several agreements (“Other Purchasers’ Agreements”) which have been, or which in the
future will be, entered into between the Company and other individuals who are or will be employees
of the Company or one of its Subsidiaries (collectively, the “Other Purchasers”). For
purposes of this Agreement, “Subsidiary,” with respect to any entity, shall mean any Person
in an unbroken chain of Persons beginning with such entity if each of the Persons, or group of
commonly controlled Persons, other than the last Person in the unbroken chain, then owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other Persons in such chain; “Affiliate” shall mean, with respect to any Person, a Person
directly or indirectly controlling, controlled by, or under common control with, such Person;
“Person” means an individual, partnership, limited liability company, corporation, business
trust, joint stock company, trust, unincorporated association, joint venture, governmental
authority or other entity of whatever nature, and “control” shall have the meaning given
such term under Rule 405 of the United States Securities Act of 1933, as amended (the
“Securities Act”).

          On the date hereof (the “Option Date”) and such other dates thereafter as the Company
shall determine, the Company will grant to the Purchaser an option or options to purchase the
number of Shares set forth on Exhibit A hereto as New Options (the “New Options”)
at an exercise price equal to US$[___] per Share (the “Initial Price Per Share”),
pursuant to the terms of the Equity Plan and the “New Option Non-Qualified Share Option
Agreement” to be dated effective as of the Option Date. The New Options may be granted as Base
Options or Performance Options (each as defined in the New Option Non-Qualified Share Option
Agreement).

          Purchaser, on the Option Date and such other dates thereafter as the Company shall agree (the
Option Date and each such other date, a “Purchase Date”), will purchase for cash the number of
Shares, if any, as set forth on Exhibit A as Co-Investment Shares (the “Co-Investment
Shares”) and/or in addition to the New Options, will be granted options under the Equity Plan
for the number of Shares set forth on Exhibit A as Rollover Options, (the “Rollover
Options”) pursuant to the terms of the Equity Plan and the Rollover Option Non-Qualified
Share Option to be dated effective as of the relevant Purchase Date.

Name – Management Shareholders Agrement

2

 

          The term “Options” as used in this Agreement shall include the Rollover Options, the
New Options and any other options to purchase Shares granted to the Purchaser by the Company and
held by the Purchaser at any time when this Agreement is in effect. The term “Shares” as
used in this Agreement shall include all Co-Investment Shares and all Shares issued to the
Purchaser by the Company upon exercise of the Options and of any other stock options held by the
Purchaser and any other Shares otherwise acquired by the Purchaser at any time when this Agreement
is in effect. “Rollover Shares” shall mean the Co-Investment Shares and Shares issued to
the Purchaser by the Company upon exercise of Rollover Options.

AGREEMENT

          To implement the foregoing and in consideration of the mutual agreements contained herein, the
Parties agree as follows:

     1. Issuance of Co-Investment Shares, New Options and Rollover Options.

          Upon and as of the Purchase Date, the Company shall issue to the Purchaser the Co-Investment
Shares, the New Options and the Rollover Options subject to the terms and conditions hereinafter
set forth and contained in the Equity Plan, the New Option Non-Qualified Share Option Agreement and
the Rollover Option Non-Qualified Share Option Agreement, and the Parties shall execute and deliver
to each other copies of the New Option Non-Qualified Share Option Agreement and the Rollover Option
Non-Qualified Share Option Agreement in connection with the issuance of the New Options and
Rollover Options.

     2. The Purchaser’s Representations, Warranties and Agreements. 

               a. The Purchaser agrees and acknowledges that Purchaser will not, directly or indirectly,
offer, transfer, sell, assign, pledge, hypothecate or otherwise dispose of any Shares (any such act
sometimes referred to herein as a “Transfer,” whether voluntary or involuntary) unless such
Transfer complies with the terms and conditions of this Agreement, including the restrictions on
Transfer contained in Section 3 hereof, and (i) the Transfer is pursuant to an effective
registration statement under the Securities Act, or the rules and regulations in effect thereunder
or (ii) (A) counsel for the Purchaser (which shall be O’Melveny & Myers LLP or such other counsel
acceptable to the Company) shall have furnished the Company with an opinion, satisfactory in form
and substance to the Company, that no such registration is required because of the availability of
an exemption from registration under the Securities Act and (B) if the Purchaser is a citizen or
resident of any country other than the United States, or the Purchaser desires to effect any
Transfer in any such country, counsel for the Purchaser (which counsel shall be reasonably
satisfactory to the Company) shall have furnished the Company with an opinion or other advice
satisfactory in form and substance to the Company to the effect that such Transfer will comply with
the securities laws of such jurisdiction. Notwithstanding the foregoing, the Company acknowledges
and agrees that any of the following Transfers are deemed to be in compliance with the Securities
Act and this Agreement and no opinion of counsel is required in connection therewith: (x) a
Transfer made pursuant to Section 5, 6, 8 or 9 hereof, (y) a Transfer upon the death of the
Purchaser to his executors, administrators, testamentary trustees, legatees or beneficiaries (the
“Purchaser’s Estate”) or a

Name – Management Shareholders Agrement

3

 

Transfer to the executors, administrators, testamentary trustees, legatees or beneficiaries of
an individual who has become a holder of Shares in accordance with the terms of this Agreement;
provided, that it is expressly understood that any such transferee shall be bound by the provisions
of this Agreement and (z) a Transfer made after the Purchase Date in compliance with the federal
securities laws to a trust, custodianship or other similar entity the beneficiaries or holders of
which may include only the Purchaser, his spouse or his lineal descendants (which term shall
include biological as well as adoptive descendants) or directly to the Purchaser’s spouse or lineal
descendants (a “Purchaser’s Trust”) or a transfer made after the fifth anniversary of the
Purchase Date to such a trust by an individual who has become a holder of Shares in accordance with
the terms of this Agreement; provided, that such Transfer is made expressly subject to this
Agreement and that the transferee agrees in writing to be bound by the terms and conditions hereof.

               b. The certificate (or certificates) representing the Shares shall bear the following legend:

“THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD,
ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH
TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION
COMPLIES WITH THE PROVISIONS OF THE MANAGEMENT SHAREHOLDER’S AGREEMENT DATED
AS OF [___, 200_] BY AND BETWEEN AVAGO TECHNOLOGIES LIMITED (THE
“COMPANY”) AND THE PURCHASER NAMED ON THE FACE HEREOF (A COPY OF
WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY). EXCEPT AS OTHERWISE
PROVIDED IN SUCH AGREEMENT, NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THE SHARES REPRESENTED BY THIS
CERTIFICATE MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR (B) IF (I) THE COMPANY HAS BEEN FURNISHED WITH A
SATISFACTORY OPINION OF COUNSEL FOR THE HOLDER THAT SUCH TRANSFER, SALE,
ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION IS EXEMPT FROM THE
PROVISIONS OF SECTION 5 OF THE ACT OR THE RULES AND REGULATIONS IN EFFECT
THEREUNDER, AND IN COMPLIANCE WITH APPLICABLE PROVISIONS OF STATE SECURITIES
LAWS, AND (II) IF THE HOLDER IS A CITIZEN OR RESIDENT OF ANY COUNTRY OTHER
THAN THE UNITED STATES, OR THE HOLDER DESIRES TO EFFECT ANY SUCH TRANSACTION
IN ANY SUCH COUNTRY, THE COMPANY HAS BEEN FURNISHED WITH A SATISFACTORY
OPINION OR OTHER ADVICE OF COUNSEL FOR THE HOLDER THAT SUCH

Name – Management Shareholders Agrement

4

 

TRANSACTION WILL NOT VIOLATE THE LAWS OF SUCH COUNTRY.”

               c. The Purchaser acknowledges that Purchaser has been advised that (i) the issuance of the
Options and the Shares have not been registered under the Securities Act, (ii) the Options and the
Shares must be held indefinitely and the Purchaser must continue to bear the economic risk of the
investment in the Options and the Shares unless the Shares are subsequently registered under the
Securities Act or an exemption from registration is available, (iii) it is not anticipated that
there will be any public market for the Options and the Shares, (iv) an exemption from registration
under Rule 144 promulgated under the Securities Act is not currently available with respect to the
sales of any securities of the Company, and except as provided in Section 11(b) hereof, the Company
has made no covenant to make such Rule available, (v) when and if Options and the Shares may be
disposed of without registration in reliance on Rule 144, such disposition can be made only in
limited amounts in accordance with the terms and conditions of such Rule, (vi) if the Rule 144
exemption is not available, public sale without registration will require compliance with some
other exemption under the Securities Act, (vii) a restrictive legend in the form heretofore set
forth shall be placed on the certificates representing the Options and the Shares and (viii) a
notation shall be made in the appropriate records of the Company indicating that the Shares are
subject to restriction on transfer and, if the Company should at some time in the future engage the
services of a stock transfer agent, appropriate stop transfer restrictions will be issued to such
transfer agent with respect to the Shares.

               d. If any Shares are to be disposed of in accordance with Rule 144 under the Securities Act or
otherwise, the Purchaser shall promptly notify the Company of such intended disposition and shall
deliver to the Company at or prior to the time of such disposition such documentation as the
Company may reasonably request in connection with such sale, and, in the case of a disposition
pursuant to Rule 144, shall deliver to the Company an executed copy of any notice on Form 144
required to be filed with the Securities and Exchange Commission.

               e. The Purchaser agrees that, if any Shares (or securities convertible into or exchangeable
for Shares) or other equity securities of the Company are offered to the public pursuant to an
effective registration statement under the Securities Act, the Purchaser will not effect any public
sale or distribution of any Shares not covered by such registration statement within 7 days prior
to, or within 180 days (or such other shorter time period as may be permitted by the underwriters
or such other longer time period as may be required by the underwriters in such offering, but in no
event more than or less than the number of days applicable to Luxco (collectively with any
shareholder required to become a party to this Agreement pursuant to Section 8(a)(iii) below the
“Sponsors”)) after the effective date of such registration statement, unless otherwise
agreed to in writing by the Company.

               f. The Purchaser represents and warrants that (i) Purchaser has received and reviewed the
Confidential Offering Memorandum relating to the debt offering by a Subsidiary of the Company and
(ii) Purchaser has been given the opportunity to obtain any additional information or documents and
to ask questions and receive answers about such documents, the Company and its Subsidiaries and
Affiliates and the business and prospects of the Company and its Subsidiaries and Affiliates and
which Purchaser deems necessary to

Name – Management Shareholders Agrement

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evaluate the merits and risks related to his investment in the Options and the Shares and to
verify the information contained in the information reviewed as indicated in this Section 2(f) and
Purchaser has relied solely on such information.

               g. The Purchaser further represents and warrants that (i) his financial condition is such that
Purchaser can afford to bear the economic risk of holding the Options and the Shares for an
indefinite period of time and has adequate means for providing for his current needs and personal
contingencies, (ii) Purchaser can afford to suffer a complete loss of his investment in the Options
and the Shares, (iii) all information which Purchaser has provided to the Company concerning
himself and his financial position is correct and complete as of that date, (iv) Purchaser
understands and has taken cognizance of all risk factors related to the purchase of the Options and
the Shares, and (v) his knowledge and experience in financial and business matters are such that
Purchaser is capable of evaluating the merits and risks of his purchase of the Options and the
Shares as contemplated by this Agreement.

     3. Restriction on Transfer.

               a. Except for Transfers permitted by clauses (x), (y) and (z) of Section 2(a) or a sale of
Shares pursuant to Section 12, the Purchaser agrees that Purchaser will not transfer, sell, assign,
pledge, hypothecate or otherwise dispose of any Shares at any time prior to the fifth anniversary
of the Purchase Date. No Transfer of any such Shares in violation hereof shall be made or recorded
on the books of the Company and any such Transfer shall be void and of no effect.

               b. Any attempt to Transfer any Shares not in compliance with this Agreement shall be null and
void and neither the Company nor any transfer agent shall give any effect in the Company’s stock
records to such attempted Transfer.

     4. Right of First Refusal.

          If, at any time after the fifth anniversary of the Purchase Date and prior to the earlier of a
Qualified Public Offering (as defined in Section 7(i) below) or Change in Control (as defined in
Section 17(b) below), the Purchaser receives a bona fide offer to purchase any or all of his Shares
(the “Offer”) from a third party (the “Offeror”) which the Purchaser wishes to
accept, the Purchaser shall cause the Offer to be reduced to writing and shall notify the Company
in writing of his wish to accept the Offer. The Purchaser’s notice shall contain an irrevocable
offer to sell such Shares to the Company, (in the manner set forth below) at a purchase price equal
to the price contained in, and on the same terms and conditions of, the Offer, and shall be
accompanied by a true copy of the Offer (which shall identify the Offeror). At any time within 45
days after the date of the receipt by the Company of the Purchaser’s notice, the Company shall have
the right and option to purchase, or to arrange for a third party to purchase, all of the Shares
covered by the Offer either (i) at the same price and on the same terms and conditions as the Offer
or (ii) if the Offer includes any consideration other than cash, then at the sole option of the
Company, at the equivalent all cash price, determined in good faith by the Company’s Board of
Directors, by delivering a certified bank check or checks in the appropriate amount to the
Purchaser at the principal office of the Company against delivery of certificates or other
instruments representing the Shares so purchased, appropriately endorsed by the Purchaser. If at

Name – Management Shareholders Agrement

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the end of such 45 day period, the Company has not tendered the purchase price for such shares
in the manner set forth above, the Purchaser may during the succeeding 30 day period sell not less
than all of the Shares covered by the Offer to the Offeror at a price and on terms no less
favorable to the Purchaser than those contained in the Offer. No sale may be made to any Offeror
unless the Offeror agrees in writing with the Company to be bound by the provisions of this Section
4 in connection with any resale by the Offeror. Promptly after such sale, the Purchaser shall
notify the Company of the consummation thereof and shall furnish such evidence of the completion
and time of completion of such sale and of the terms thereof as may reasonably be requested by the
Company. If, at the end of the 30 day period following the expiration of the 45 day period for the
Company to purchase the Shares, the Purchaser has not completed the sale of such Shares as
aforesaid, all the restrictions on sale, transfer or assignment contained in this Agreement shall
again be in effect with respect to such Shares.

     5. The Purchaser’s Resale of Shares and Options to the Company Upon The Purchaser’s Death
or Disability.

               a. If on or before the fifth anniversary of the Purchase Date, (A) the Purchaser is still in
the employ of the Company or any Subsidiary of the Company and (B) the Purchaser either dies or
becomes permanently disabled then the Purchaser, the Purchaser’s Estate or the Purchaser’s Trust,
as the case may be, shall have the right, for twelve months following the date of death or
permanent disability, to (X) sell to the Company, and the Company shall be required to purchase, on
one occasion, all or any portion of the Shares then held by the Purchaser, the Purchaser’s Estate
and/or the Purchaser’s Trust, as the case may be, at the Section 5 Repurchase Price, as determined
in accordance with Section 7; provided, that such Shares have been held by Purchaser, Purchaser’s
Estate or the Purchaser’s Trust for not less than six months and one day as of the date of their
sale to the Company, and (Y) require the Company to issue to the Purchaser, the Purchaser’s Estate
or the Purchaser’s Trust, as the case may be, that number of Shares having an aggregate Fair Market
Value equal to the Option Excess Price (as defined in Section 10) determined on the basis of a
Section 5 Repurchase Price as provided in Section 10 with respect to the termination of all or any
portion of the outstanding exercisable Options then held by the Purchaser, which Shares the
Purchaser, the Purchaser’s Estate and/or the Purchaser’s Trust may then require the Company to
purchase in accordance with clause (X) above (including with respect to the six month and one day
timing restriction contained therein). The Purchaser, the Purchaser’s Estate and/or the
Purchaser’s Trust, as the case may be, shall send written notice to the Company of its intention to
sell Shares and/or to terminate Options in exchange for the payment and/or Share issuance referred
to in the preceding sentence (the “Redemption Notice”). The completion of the purchase
shall take place at the principal office of the Company on the tenth business day after the giving
of the Redemption Notice. The Section 5 Repurchase Price and any issuance of Shares with respect
to the Options as described above shall be paid by delivery to the Purchaser, the Purchaser’s
Estate or the Purchaser’s Trust, as the case may be, of Shares and/or a certified bank check or
checks in the appropriate amount payable to the order of the Purchaser, the Purchaser’s Estate or
the Purchaser’s Trust, as the case may be, against delivery of certificates or other instruments
representing the Shares so purchased and appropriate documents canceling the Options so terminated,
appropriately endorsed or executed by the Purchaser, the Purchaser’s Estate or the Purchaser’s
Trust, or his or its duly authorized representative. For purposes of this Agreement, the Purchaser
shall be deemed to have a “permanent disability” if the Purchaser is unable to engage in
activities required by the terms of

Name – Management Shareholders Agrement

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Purchaser’s employment by the Company or any Subsidiary of the Company by reason of any
medically determinable physical or mental impairment that can be expected to result in death or
that has lasted or can be expected to last for a continuous period of not less than 12 months.

               b. Notwithstanding anything in Section 5(a) to the contrary and subject to Section 13, if
there exists and is continuing a default or an event of default on the part of the Company or any
Subsidiary of the Company under any loan, guarantee or other agreement under which the Company or
any Subsidiary of the Company has borrowed money or such repurchase would result in a default or an
event of default on the part of the Company or any Subsidiary of the Company under any such
agreement or if a repurchase would not be permitted under any applicable law or regulation (each
such occurrence being an “Event”), the Company shall not be obligated to repurchase any of
the Shares or the Options from the Purchaser, the Purchaser’s Estate, or the Purchaser’s Trust, as
the case may be, until the first business day which is 15 calendar days after all of the foregoing
Events have ceased to exist (the “Repurchase Eligibility Date”); provided, however, that
(i) the number of Shares subject to repurchase under this Section 5(b) shall be that number of
Shares, and (ii) the number of Exercisable Option Shares (as defined in Section 10) for purposes of
calculating the Option Excess Price payable under this Section 5(b) shall be the number of
Exercisable Option Shares held by the Purchaser, the Purchaser’s Estate or the Purchaser’s Trust,
as the case may be, at the time of delivery of a Redemption Notice in accordance with Section 5(a)
hereof. All Options exercisable as of the date of a Redemption Notice shall continue to be
exercisable until the repurchase pursuant to such Redemption Notice.

     6. The Company’s Option to Repurchase Shares and Options of the Purchaser.

     a. (i) If, on or prior to the fifth anniversary of the Purchase Date, (A) the
Purchaser’s active employment with the Company (and/or, if applicable, its
Subsidiaries or Affiliates) is voluntarily or involuntarily terminated for any
reason whatsoever, (B) the beneficiaries of the Purchaser’s Trust shall include any
person or entity other than the Purchaser, his spouse or his lineal descendants, (C)
the Purchaser shall effect a Transfer of any of the Shares other than as permitted
in this Agreement, unless such Transfer is corrected within 10 days after the date
of the Call Notice, or (D) there shall occur a Transfer of any of the Shares
pursuant to any bankruptcy proceeding, levy, property settlement or disposition
pursuant to law incident to marital separation or divorce (alternatively, a
“Call Event”), the Company shall have the right to purchase all or any
portion of the Shares then held by the Purchaser, the Purchaser’s Estate or the
Purchaser’s Trust at the Section 6 Repurchase Price determined in accordance with
Section 7 hereof; provided, however, that the Call Event described in clause (D) of
this Section 6(a)(i) shall entitle the Company to repurchase only that number of
Shares that are the subject of the transfer resulting in the Call Event; and
provided, further, that if the Call Event results from the death or permanent
disability (as determined in accordance with Section 5) of the Purchaser, the
Company shall have the right to purchase all or any portion of the Shares held by
the Purchaser, the Purchaser’s Estate or the Purchaser’s Trust only at the Section 5
Repurchase Price. The Company shall have until 60 days after the date on

Name – Management Shareholders Agrement

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which the Company has actual knowledge of a Call Event (other than a Call Event
resulting from death or disability in which case the Company shall have 12 months)
in which to give notice in writing to the Purchaser of the exercise of such election
(“Call Notice”).

               (ii) In the event that (A) the Purchaser, the Purchaser’s Estate and/or the
Purchaser’s Trust holds Shares and Options and the Company exercises its right to
repurchase Shares pursuant to this Section 6 or (B) the Purchaser, the Purchaser’s
Estate and/or the Purchaser’s Trust holds only Options and the Company elects to
cash out such Options upon the occurrence of an event specified in Section 6(a)(i)
(in accordance with the requirements of the Call Notice), the Company shall pay the
Purchaser, the Purchaser’s Estate or the Purchaser’s Trust, as the case may be, an
amount equal to the Option Excess Price determined on the basis of the Section 6
Repurchase Price or the Section 5 Repurchase Price, as applicable, with respect to
the termination of (x) if the Call Event is described in clause (A), (B) or (C) of
Section 6(a)(i), all or any portion of the then exercisable outstanding Options held
by the Purchaser, Purchaser’s Estate or Purchaser’s Trust and (y) if the Call Event
is described in clause (D) of Section 6(a)(i), a pro rata portion
(based on the ratio of the number of Shares that are the subject of the Transfer to
the sum of such number and the number of additional shares so held) of the then
exercisable outstanding Options held by the Purchaser, the Purchaser’s Estate or the
Purchaser’s Trust.

               (iii) The completion of the purchases pursuant to the foregoing shall take
place at the principal office of the Company on the tenth business day after the
later of the giving of notice of the exercise of the option to purchase or the date
of the Call Event. The Section 5 Repurchase Price or the Section 6 Repurchase
Price, as the case may be, and any payment with respect to the Options as described
above shall be paid by delivery to the Purchaser, the Purchaser’s Estate or the
Purchaser’s Trust, as the case may be, of a certified bank check or checks in the
appropriate amount payable to the order of the Purchaser, the Purchaser’s Estate or
the Purchaser’s Trust, as the case may be, against delivery of certificates or other
instruments representing the Shares so purchased and appropriate documents canceling
the Options so terminated, appropriately endorsed or executed by the Purchaser, the
Purchaser’s Trust or his or its duly authorized representative.

               b. Notwithstanding any other provision of this Section 6 to the contrary and subject to
Section 13, if there exists and is continuing any Event, the Company shall delay the repurchase of
any of the Shares or the Options (pursuant to a Call Notice timely given in accordance with Section
6(a) hereof) from the Purchaser, the Purchaser’s Estate or the Purchaser’s Trust, as the case may
be, until the Repurchase Eligibility Date; provided, however, that (i) the number of Shares subject
to repurchase under this Section 6(b) shall be that number of Shares and (ii) the number of
Exercisable Option Shares for purposes of calculating the Option Excess Price payable under this
Section 6(b) shall be the number of Exercisable Option Shares held by the Purchaser, the
Purchaser’s Estate or the Purchaser’s Trust, as the case may be,

Name – Management Shareholders Agrement

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at the time of delivery of a Call Notice in accordance with Section 6(a) hereof. All Options
exercisable as of the date of a Call Notice shall continue to be exercisable until the repurchase
pursuant to such Call Notice.

     7. Determination of Repurchase Price.

               a. The Section 5 Repurchase Price and the Section 6 Repurchase Price are hereinafter
collectively referred to as the “Repurchase Price.” The event giving rise to the
repurchase shall be deemed to be the Transfer, death, permanent disability, termination of
employment, or other event, as the case may be (the “Repurchase Event”), not the giving of
any notice required pursuant to Section 5 or Section 6.

               b. The “Repurchase Calculation Date” shall be the last day of the month preceding the
later of (A) the month in which the Repurchase Event occurs or (B) the month in which the
Repurchase Eligibility Date occurs; provided, however, that in the event of a Repurchase Event
arising under Section 5 as a result of death or disability, the Repurchase Calculation Date shall
be the date of the repurchase by the Company.

               c. Prior to a Public Offering (as hereinafter defined) the Section 5 Repurchase Price shall be
Fair Market Value (as defined in Section 7(k)) as of the Repurchase Calculation Date. After a
Public Offering, the Section 5 Repurchase Price shall be the Market Price Per Share (as defined in
Section 7(j)) as of the Repurchase Calculation Date.

               d. In the event of Purchaser’s termination without Cause by the Company (and/or, if
applicable, its Subsidiaries or Affiliates), or resignation with Good Reason (as defined in Section
7(g)), the Section 6 Repurchase Price for Shares, shall be either (A) Fair Market Value if the
Repurchase Calculation Date is prior to a Public Offering or (B) Market Price Per Share if the
Repurchase Calculation Date is after a Public Offering (Fair Market Value and Market Price Per
Share, as applicable, the “Market Value”); provided, however, if the Repurchase Eligibility
Date is more than 12 months following the Repurchase Event, then the Section 6 Repurchase Price
shall not be less than the Section 6 Repurchase Price determined as of the last day of the month
preceding the month in which the Repurchase Event occurs, plus interest compounded annually thereon
at a rate equal to the interest rate applicable under Section 1274(d) of the Internal Revenue Code
of 1986, as amended (the “Code”) on short term obligations.

               e. In the event of the Purchaser’s resignation without Good Reason (as defined in Section
7(g)), the Section 6 Repurchase Price shall be Market Value with respect to any Co-Investment
shares or Shares acquired upon exercise of Rollover Options; provided, however, if the Repurchase
Eligibility Date is more than 12 months following the Repurchase Event, then the Section 6
Repurchase Price shall not be less than the Section 6 Repurchase Price determined as of the last
day of the month preceding the month in which the Repurchase Event occurs, plus interest compounded
annually thereon at a rate equal to the interest rate applicable under Section 1274(d) of the Code
on short term obligations. With respect to any other Shares, the Section 6 Repurchase Price shall
be (i) if the Book Value Per Share on the Repurchase Calculation Date is less than the Book Value
Per Share on the Purchase Date (such difference being the “Book Value Decrease”), the
lesser of (x) the Market Value or (y) the Initial Price Per Share or (ii) if the Book Value Per
Share on the Repurchase Calculation Date is greater than the

Name – Management Shareholders Agrement

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Book Value Per Share on the Purchase Date the Section 6 Repurchase Price shall be the lesser
of (A) the Market Value, and (B) the Initial Price Per Share, plus (x) the Percentage (as defined
below) multiplied by (y) the amount, if any, by which the Book Value Per Share as of the Repurchase
Calculation Date exceeds the Book Value Per Share on the Purchase Date.

               f. In the event of the Purchaser’s termination by the Company (and/or, if applicable, its
Subsidiaries or Affiliates) for Cause or an event described in Section 6(a)(i)(B), (C) or (D), the
Section 6 Repurchase Price shall be a per share Repurchase Price equal to the least of (i) Market
Value, (ii) the Initial Price Per Share, or (iii) the Initial Price Per Share less the amount of
any Book Value Decrease.

               g. For purposes of this Agreement the following definitions shall apply: “Cause” shall
mean (i) the Purchaser’s willful refusal to perform in any material respect his lawful duties or
responsibilities for the Company or its Subsidiaries or willful disregard in any material respect
of any financial or other budgetary limitations established in good faith by the Board of Directors
or the board of any Subsidiary by which the Purchaser is employed; or (ii) the engaging by the
Purchaser in conduct that causes material and demonstrable injury, monetarily or otherwise, to the
Company or any of its Subsidiaries, including, but not limited to, misappropriation or conversion
of assets of the Company or its Subsidiaries (other than non-material assets); or (iii) conviction
of or entry of a plea of nolo contendere to a non-vehicular felony. No act or failure to act by the
Purchaser shall be deemed “willful” if done, or omitted to be done, by him in good faith and with
the reasonable belief that his action or omission was in the best interest of the Company or its
Subsidiaries or consistent with Company policies or the directive of the Company’s Board of
Directors.

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

Name – Management Shareholders Agrement

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          The “Percentage” shall be determined as follows:

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

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

               i. As used herein the term “Public Offering” shall mean a public offering and sale of
Shares by the Company (or any successor) pursuant to an effective registration statement under the
Securities Act and/or in compliance with equivalent applicable foreign securities laws (other than
a registration statement on Form S-8, Form S-4, Form F-4 or any other similar form). A
“Qualified Public Offering” shall mean a Public Offering pursuant to an effective
registration statement relating to the sale of Shares held by any or all of the Sponsor and its
Affiliates which results in gross proceeds to the Sponsors and its Affiliates in excess of
$250,000,000 and an active trading market in the Shares.

               j. As used herein the term “Market Price Per Share” shall mean the price per share
equal to the last sale price (or if no sales occur on such day, then the average of the closing bid
and asked prices for such day) of the Shares on the Repurchase Calculation Date on each exchange on
which the Shares may at the time be listed and on which the Shares may be

Name – Management Shareholders Agrement

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traded on such dates or, if the Shares shall not be so listed, the closing sales price as
reported by NASDAQ for the Repurchase Calculation Date in the over-the-counter market.

               k. As used herein the term “Fair Market Value” of a share shall mean the fair market
value, as determined in good faith by the Board of Directors of the Company in its sole discretion
without giving effect to any discount for minority status or transfer restrictions, based upon such
facts and circumstances as it deems relevant.

               l. In determining the Repurchase Price, appropriate adjustments shall be made for any future
issuances of rights to acquire and securities convertible into Shares and any stock dividends,
splits, combinations, recapitalizations or any other adjustment in the number of outstanding
Shares.

     8. “Tag-Along” Right.

               a. In the event that at any time prior to the fifth anniversary of a Public Offering, the
Sponsors or a Sponsor Affiliate to whom a Sponsor has transferred any of its Shares (a
“Transfer Affiliate”) proposes to transfer for value any Shares owned by it to any person
(a “Proposed Purchaser”), in any transaction other than (i) a Public Offering; (ii) from
and after the initial firm commitment underwritten Public Offering, pursuant to Rule 144 or a block
sale to a financial institution in the ordinary course of its trading business; provided, that
Section 3 and 4 shall no longer apply with respect to a number of Shares equal to the maximum
number of Shares the Purchaser, the Purchaser’s Estate or the Purchaser’s Trust, as the case may
be, would have been entitled to sell in such sale pursuant to the first sentence of Section 8(b)
other than due to the provisions of this clause (ii), (iii) a distribution, dividend or other
transfer of Shares by Luxco to its shareholders, by way of liquidation or otherwise; provided, that
such shareholders become parties to this Agreement, in the capacity of a Sponsor, or (iv) a sale to
a Sponsor Affiliate, the Sponsor (or such Transfer Affiliate) will notify the Purchaser, the
Purchaser’s Estate or the Purchaser’s Trust, as the case may be, in writing (a “Sale
Notice”) of such proposed sale (a “Proposed Sale”) and the material terms of the
Proposed Sale as of the date of the Sale Notice (the “Material Terms”) promptly and in any
event not less than 25 days prior to the Proposed Sale and not more than 5 days after the execution
of the definitive agreement relating to the Proposed Sale, if any (the “Sale Agreement”).
If within 20 business days of the date of receipt of the Sale Notice, the Sponsor (or such Transfer
Affiliate) receives a written request (a “Sale Request”) to include Shares held by the
Purchaser, the Purchaser’s Estate or the Purchaser’s Trust in the Proposed Sale, the Shares so held
by the Purchaser, the Purchaser’s Estate or the Purchaser’s Trust, not to exceed the amount
provided in Section 8(b) below, shall be so included as provided herein; provided, that only one
such Sale Request may be delivered by the Purchaser or the Purchaser’s Estate or the Purchaser’s
Trust, as the case may be, with respect to any single Proposed Sale for any Shares held by the
Purchaser or the Purchaser’s Estate or the Purchaser’s Trust; and provided, further, that any Sale
Request shall be irrevocable unless (x) there shall be a material adverse change in the Material
Terms or (y) otherwise mutually agreed to in writing by the Purchaser, the Purchaser’s Estate or
the Purchaser’s Trust, as the case may be, and Sponsor (or such Transfer Affiliate). Promptly
after the receipt of the Sale Request, the Sponsor (or such Transfer Affiliate) will furnish the
Purchaser, the Purchaser’s Estate or the Purchaser’s Trust with a copy of the Sale Agreement, if
any.

Name – Management Shareholders Agrement

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               b. The maximum number of Shares that the Purchaser or the Purchaser’s Estate or the
Purchaser’s Trust, as the case may be, will be permitted to include in a Proposed Sale pursuant to
a Sale Request will be the product of (i) the sum of the number of Shares (A) then held by the
Purchaser or the Purchaser’s Estate or the Purchaser’s Trust, including all Exercisable Option
Shares (as defined in Section 10(b)) and (B) Option Shares which will become exercisable prior to
or in connection with the Proposed Sale, multiplied by (ii) the ratio of (A) the number of Shares
which the Sponsor (or the Transfer Affiliate) proposes to sell in the Proposed Sale, (after giving
effect to this Agreement, the Other Purchasers’ Agreements, and any other agreements among the
Sponsors (or any Transfer Affiliate) and other agreement with any holder of Shares that gives the
right to such holder to participate in the Proposed Sale) divided by (B) the number of Shares then
held by such Sponsor (or the Transfer Affiliate). Notwithstanding the above, if one of more
holders of Shares who have been granted rights similar to those granted hereunder elect not to
include in the Proposed Sale the maximum number of Shares which such holder would have been
permitted to include in a Proposed Sale (the “Eligible Shares”), the holders of Shares,
including the Sponsor (or the Transfer Affiliate), or any of them, may sell in the Proposed Sale a
number of additional Shares owned by any of them equal to their pro rata portion of the number of
Eligible Shares not included in the Proposed Sale, based on the relative number of Shares then held
by each such holder, and such additional Shares which any such holder or holders propose to sell
shall not be included in the calculation made pursuant to this Paragraph (b) for the purpose of
determining the maximum number of Shares which the Purchaser or the Purchaser’s Estate or the
Purchaser’s Trust, as the case may be, will be permitted to include in a Proposed Sale. Each
Sponsor (or the Transfer Affiliate) may sell in the Proposed Sale additional Shares owned by it
equal to any remaining Eligible Shares that will not be included in the Proposed Sale pursuant to
the foregoing sentence.

               c. Except as may otherwise be provided herein, Shares subject to a Sale Request will be
included in a Proposed Sale pursuant hereto and in any agreements with the Proposed Purchaser
relating thereto on the same terms and subject to the same conditions applicable to the Shares
which the Sponsor (or the Transfer Affiliate) proposes to sell in the Proposed Sale. Such terms
and conditions shall include, without limitation: the pro rata reduction of the number of Shares to
be included in the Proposed Sale if required by the Proposed Purchaser; the sales price; the
payment of fees, commissions and expenses; the provision of, and representation and warranty as to,
information requested by the Sponsor (or the Transfer Affiliate), and the provision of requisite
indemnifications; provided, that any indemnification provided by the Purchaser, the Purchaser’s
Estate or the Purchaser’s Trust shall be pro rata in proportion with the number of Shares to be
sold; and provided, further, that fees paid to certain affiliates of the Sponsors pursuant to that
certain Advisory Agreement with the Company and such affiliates in connection with the Proposed
Sale shall not be deemed to be terms and conditions with respect to the Sale of the Shares.

               d. Upon delivering a Sale Request, the Purchaser, the Purchaser’s Estate or the Purchaser’s
Trust, as the case may be, will, if requested by the Sponsor (or the Transfer Affiliate), execute
and deliver a custody agreement and power of attorney in form and substance satisfactory to the
Sponsor (or the Transfer Affiliate) (a “Custody Agreement and Power of Attorney”) with
respect to the Shares which are to be included in the Proposed Sale pursuant hereto. The Custody
Agreement and Power of Attorney will provide, among other things, that

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the Purchaser, the Purchaser’s Estate or the Purchaser’s Trust, as the case may be, will
deliver to and deposit in custody with the custodian and attorney-in-fact named therein a
certificate or certificates representing such Shares (duly endorsed in blank by the registered
owner or owners thereof or accompanied by duly executed stock powers in blank) and irrevocably
appoint said custodian and attorney-in-fact as the Purchaser, the Purchaser’s Estate’s or the
Purchaser’s Trust’s, as the case may be, agent and attorney-in-fact with full power and authority
to act under the Custody Agreement and Power of Attorney on behalf of the Purchaser, the
Purchaser’s Estate or the Purchaser’s Trust, as the case may be, with respect to the matters
specified therein.

               e. The Purchaser, Purchaser’s Trust or Purchaser’s Estate shall execute such other agreements
as the Sponsor (or the Transfer Affiliate) may reasonably request in connection with the
consummation of a Proposed Sale and Sale Request and the transactions contemplated hereby and the
Purchaser’s, Purchaser’s Estate or Purchaser’s Trust, as the case may be, right pursuant hereto to
participate in a Proposed Sale shall be contingent on such person’s strict compliance with each
provision of this Agreement.

     9. Purchaser’s “Bring-Along” Right.

          In the event that at any time prior to the fifth anniversary of a Public Offering, a Sponsor
(or a Transfer Affiliate) proposes to sell any of its holdings of Shares (the “Sponsor
Shares”) in a Proposed Sale (a “Bring-Along Sale”), such Sponsor may provide Purchaser
or Purchaser’s Estate or Purchaser’s Trust, as the case may be, written notice (a “Bring-Along
Notice”) of such Proposed Sale and the Material Terms not less than 10 business days prior to
the proposed date of the Bring-Along Sale (the “Bring-Along Sale Date”) and the Purchaser
hereby agrees to sell to such Proposed Purchaser, as provided in Sections 8(c), (d) and (e), the
number of Shares equal to the product of (i) the sum of the number of Shares (A) then held by the
Purchaser or the Purchaser’s Estate or the Purchaser’s Trust, including all Exercisable Option
Shares and (B) any Option Shares which will become exercisable prior to or in connection with the
Bring-Along Sale, multiplied by (ii) the ratio of (A) the number of Shares which Sponsor (or a
Transfer Affiliate) proposes to sell in the Proposed Sale, divided by (B) the number of Shares then
held by Sponsor (or a Transfer Affiliate) at the same price and upon the same terms and conditions
as such transfer of Sponsor Shares. The Purchaser, Purchaser’s Trust or Purchaser’s Estate, as the
case may be, shall exercise Options to the extent necessary to obtain a number of Shares sufficient
to fulfill its obligation to sell Shares in a Bring-Along Sale pursuant to this Section 9. The
provisions of this Section 9 shall apply regardless of the form of consideration in the Bring-Along
Sale.

10. Shares Issued to the Purchaser Upon Exercise of Options; Termination
of Options.

               a. The Company may from time to time grant to the Purchaser, in addition to the Options
granted pursuant to this Agreement, Options under the Equity Plan or otherwise to purchase Shares.
All Options and Shares issuable by the Company upon exercise of such Options shall be subject to
the terms and conditions of this Agreement.

               b. All outstanding Options granted to the Purchaser under the Equity Plan or otherwise,
whether or not then exercisable, will be automatically terminated upon the payment

Name – Management Shareholders Agrement

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by the Company to the Purchaser, pursuant to the provisions of Section 5 or 6 of this
Agreement, of an amount equal to the Option Excess Price. If the Option Excess Price is zero or a
negative number, all outstanding Options granted to the Purchaser under the Equity Plan or
otherwise, whether or not then exercisable, shall be automatically terminated upon the repurchase
of Shares as provided in Section 5 or 6. The “Option Excess Price” is the excess, if any,
of the Section 5 Repurchase Price or the Section 6 Repurchase Price, depending on which Repurchase
Price is being used to repurchase the Shares, over the exercise prices applicable to such Options
multiplied by the number of Exercisable Option Shares. For purposes hereof, “Exercisable
Option Shares” shall mean the Shares which, at the time of determination, could be purchased by
the Purchaser upon exercise of his outstanding Options.

     11. The Company’s Representations and Warranties.

               a. The Company represents and warrants to the Purchaser that (i) this Agreement has been duly
authorized, executed and delivered by the Company and (ii) the Shares, when issued and delivered in
accordance with the terms hereof, will be duly and validly issued, fully paid and nonassessable.

               b. If the Company shall have filed a registration statement pursuant to the requirements of
Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or
engaged in a Public Offering, (i) the Company shall use reasonable efforts to register the Options
and the Shares to be acquired on exercise thereof on a Form S-8 Registration Statement or any
successor to Form S-8 to the extent that such registration is then available with respect to such
Options and Shares and (ii) the Company will file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the Securities and
Exchange Commission (“SEC”) thereunder, to the extent required from time to time to enable
the Purchaser to sell Shares without registration under the Securities Act within the limitations
of the exemptions provided any applicable rule or regulation of the SEC. Notwithstanding anything
contained in this Section 11(b), the Company may deregister under Section 12 of the Exchange Act if
it is then permitted to do so pursuant to the Exchange Act and the rules and regulations
thereunder. Nothing in this Section 11(b) shall be deemed to limit in any manner the restrictions
on sales of Shares contained in this Agreement.

     12. “Piggyback” Registration Rights. Until the later of (i) the first occurrence of a
Qualified Public Offering and (ii) the fifth anniversary of the Effective Date:

               a. The Purchaser, Purchaser’s Trust or Purchaser’s Estate hereby agrees to be bound by all of
the terms, conditions and obligations of the Registration Rights Agreement (the “Registration
Rights Agreement”) entered into by and among the Company and investors party thereto as amended
from time to time, in each case as if the Purchaser, Purchaser’s Trust or Purchaser’s Estate were a
Holder (as such term is defined in the Registration Rights Agreement); provided, however, that at
no time shall the Purchaser, Purchaser’s Trust or Purchaser’s Estate have any rights to request
registration under the Registration Rights Agreement; and provided, further, that Purchaser,
Purchaser’s Estate and Purchaser’s Trust’s rights shall be limited as set forth in this Section 12.
All Shares purchased or held by Purchaser, Purchaser’s Trust or Purchaser’s Estate pursuant to
this Agreement shall be deemed to be “Registrable Securities” as defined in the
Registration Rights Agreement.

Name – Management Shareholders Agrement

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               b. In the event of a sale of Shares by the Sponsor in accordance with the terms of the
Registration Rights Agreement, the Company will promptly notify the Purchaser, Purchaser’s Trust or
Purchaser’s Estate in writing (a “Notice”) of the proposed registration (a “Proposed
Registration”). If within 15 days of the receipt by the Purchaser, Purchaser’s Trust or
Purchaser’s Estate of such Notice, the Company receives from the Purchaser, Purchaser’s Trust or
Purchaser’s Estate, as the case may be, a written request (a “Request”) to register Shares
held by the applicable Purchaser, Purchaser’s Trust or Purchaser’s Estate (which Request will be
irrevocable unless otherwise mutually agreed to in writing by the Purchaser, Purchaser’s Trust or
Purchaser’s Estate and the Company), Shares will be so registered as provided in this Section 12;
provided, however, that for each such registration statement only one Request, which shall be
executed by the Purchaser, Purchaser’s Trust or Purchaser’s Estate, as the case may be, may be
submitted for all Registrable Securities held by the Purchaser, Purchaser’s Trust or Purchaser’s
Estate.

               c. The maximum number of Shares that will be registered pursuant to a Request will be the
lowest of (i) the number of Shares then held by the Purchaser, Purchaser’s Trust or Purchaser’s
Estate, including all Shares which the Purchaser, Purchaser’s Trust or Purchaser’s Estate are then
entitled to acquire under an unexercised Option to the extent then exercisable, multiplied by a
fraction, the numerator of which is the number of Shares being sold by the Sponsors and the
denominator of which is the aggregate number of Shares owned by the Sponsors or (ii) the maximum
number of Shares which the Company can register in the Proposed Registration without adverse effect
on the offering in the view of the managing underwriters (reduced pro rata with all Other
Purchasers) as more fully described in subsection (d) of this Section 12 or (iii) the maximum
number of Shares which the Purchaser, Purchaser’s Trust or Purchaser’s Estate (pro rata based upon
the aggregate number of Shares the Purchaser, Purchaser’s Trust or Purchaser’s Estate and all other
Purchasers have requested to be registered) is permitted to register under the Registration Rights
Agreement, including, without limitation, any reductions required by the Registration Rights
Agreement.

               d. Upon delivering a Request, the Purchaser, Purchaser’s Trust or Purchaser’s Estate will, if
requested by the Company, execute and deliver a Custody Agreement and Power of Attorney. The
Custody Agreement and Power of Attorney will provide, among other things, that the Purchaser,
Purchaser’s Trust or Purchaser’s Estate will deliver to and deposit in custody with the custodian
and attorney-in-fact named therein a certificate or certificates representing such Shares (duly
endorsed in blank by the registered owner or owners thereof or accompanied by duly executed stock
powers in blank) and irrevocably appoint said custodian and attorney-in-fact as the Purchaser,
Purchaser’s Trust or Purchaser’s Estate’s agent and attorney-in-fact with full power and authority
to act under the Custody Agreement and Power of Attorney on the Purchaser, Purchaser’s Trust or
Purchaser’s Estate’s behalf with respect to the matters specified therein.

               e. The Purchaser, Purchaser’s Trust or Purchaser’s Estate agrees that Purchaser, Purchaser’s
Trust or Purchaser’s Estate, as applicable, will execute such other agreements as the Company may
reasonably request to further evidence the provisions of this Section.

     13. Pro Rata Repurchases.

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          Notwithstanding anything to the contrary contained in Sections 5, 6 or 7, if at any time
consummation of all purchases and payments to be made by the Company pursuant to this Agreement and
the Other Purchasers’ Agreements would result in an Event, then the Company shall make purchases
from, and payments to, the Purchaser and Other Purchasers pro rata (on the basis of the proportion
of the number of Shares and the number of Options each such Purchaser and all Other Purchasers have
elected or are required to sell to the Company) for the maximum number of Shares and shall pay the
Option Excess Price for the maximum number of Options permitted without resulting in an Event (the
“Maximum Repurchase Amount”). The provisions of Sections 5(b) and 6(b) shall apply in
their entirety to payments and repurchases with respect to Options and Shares which may not be made
due to the limits imposed by the Maximum Repurchase Amount under this Section 13. Until all of
such Shares and Options are purchased and paid for by the Company, the Purchaser and the Other
Purchasers whose Shares and Options are not purchased in accordance with this Section 13 shall have
priority, on a pro rata basis, over other purchases of Shares and Options by the Company pursuant
to this Agreement and Other Purchasers’ Agreements.

     14. Rights to Negotiate Repurchase Price.

          Nothing in this Agreement shall be deemed to restrict or prohibit the Company from purchasing
Shares or Options from the Purchaser, at any time, upon such terms and conditions, and for such
price, as may be mutually agreed upon between the Parties, whether or not at the time of such
purchase circumstances exist which specifically grant the Company the right to purchase, or the
Purchaser the right to sell, Shares or the Company has the right to pay, or the Purchaser has the
right to receive, the Option Excess Price under the terms of this Agreement.

     15. Covenant Regarding 83(b) Election.

          Except as the Company may otherwise agree in writing, the Purchaser hereby covenants and
agrees that Purchaser will make an election provided pursuant to Treasury Regulation 1.83-2 with
respect to the Shares to be acquired upon each exercise of the Purchaser’s Options; and the
Purchaser further covenants and agrees that Purchaser will furnish the Company with copies of the
forms of election the Purchaser files within 30 days after the date hereof, and within 30 days
after each exercise of the Purchaser’s Options and with evidence that each such election has been
filed in a timely manner.

     16. Notice of Change of Beneficiary.

          Immediately prior to any transfer of Shares to a Purchaser’s Trust, the Purchaser shall
provide the Company with a copy of the instruments creating the Purchaser’s Trust and with the
identity of the beneficiaries of the Purchaser’s Trust. The Purchaser shall notify the Company
immediately prior to any change in the identity of any beneficiary of the Purchaser’s Trust.

     17. Expiration of Certain Provisions.

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               a. The provisions contained in Sections 2, 4, 5, 6, 8, 9 and 12 of this Agreement and the
portion of any other provision of this Agreement which incorporates the provisions of Section 4, 5
or 6, shall terminate and be of no further force or effect with respect to any Shares sold by the
Purchaser pursuant to an effective registration statement filed by the Company pursuant to Section
11 hereof.

               b. The provisions contained in Sections 2(e), 3, 4, 5, 6, 8, 9, 12 and 15 of this Agreement,
and the portion of any other provisions of this Agreement which incorporate the provisions of any
of such Sections, shall terminate and be of no further force or effect upon the consummation of a
Change in Control. For purposes of this Agreement, “Change in Control” means (i) sales of
all or substantially all of the assets of the Company and its subsidiaries, taken as a whole, to a
Person who is not an Affiliate of the Company or the Sponsors, (ii) a sale by the Sponsors or any
of their respective Affiliates resulting in more than 50% of the voting shares of the Company being
held by a person or related group of persons that does not include the Sponsors or any of their
respective Affiliates, or (iii) a merger or consolidation of the Company into another Person which
is not an Affiliate of the Company or the Sponsors, if and only if as a result of such merger or
consolidation the Sponsors lose the ability to elect a majority of the Board of Directors of the
Company (or the resulting entity).

     18. Recapitalizations, etc.

          The provisions of this Agreement shall apply, to the full extent set forth herein with respect
to the Shares or the Options, to any and all shares of capital stock of the Company or any capital
stock, partnership units or any other security evidencing ownership interests in any successor or
assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be
issued in respect of, in exchange for, or in substitution of the Shares or the Options, by reason
of any stock dividend, split, reverse split, combination, recapitalization, liquidation,
reclassification, merger, consolidation or otherwise.

     19. The Purchaser’s Employment by the Company.

          Nothing contained in this Agreement (i) obligates the Company or any Subsidiary or Affiliate
of the Company to employ the Purchaser in any capacity whatsoever or (ii) prohibits or restricts
the Company (or any of its Subsidiaries or Affiliates) from terminating the employment, if any, of
the Purchaser at any time or for any reason whatsoever, with or without Cause, and the Purchaser
hereby acknowledges and agrees that except as may be contained in Purchaser’s employment agreement
with the Company, neither the Company nor any other Person has made any representations or promises
whatsoever to the Purchaser concerning the Purchaser’s employment or continued employment by the
Company.

     20. Securities Laws.

          The Company hereby agrees to use its reasonable efforts to comply with all foreign and state
securities or “blue sky” laws that might be applicable to the sale of the Shares and the issuance
of the Options to the Purchaser.

Name – Management Shareholders Agrement

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     21. Binding Effect.

          The provisions of this Agreement shall be binding upon and accrue to the benefit of the
parties hereto and their respective heirs, legal representatives, successors and permitted assigns.
Purchaser may assign his rights and obligations under this Agreement only to those transferees to
whom Purchaser is required to do so pursuant to the terms hereof. In the case of a transferee
permitted under Section 2(a) hereof, such transferee shall be deemed the Purchaser hereunder;
provided, however, that no transferee (including without limitation, transferees referred to in
Section 2(a) hereof) shall derive any rights under this Agreement unless and until such transferee
has delivered to the Company a valid undertaking and becomes bound by the terms of this Agreement.

     22. Amendment.

          This Agreement may be amended only by a written instrument signed by the Parties hereto.

     23. Closing.

          Except as otherwise provided herein, the closing of each purchase and sale of Shares and the
payment of the Option Excess Price, if any, pursuant to this Agreement shall take place at the
principal office of the Company on the tenth business day following delivery of the notice by
either Party to the other of its exercise of the right to purchase or sell such Shares hereunder or
to cause the payment of the Option Excess Price, if any.

     24. Applicable Law.

          The laws of Singapore shall govern the interpretation, validity and performance of the terms
of this Agreement, regardless of the law that might be applied under principles of conflicts of
law. Each of the Company, Luxco and the Purchaser (the “Parties”) hereby irrevocably and
unconditionally submits to the exclusive jurisdiction of the state and federal courts located in or
for the State of California, County of San Mateo, for any actions, suits, or proceedings arising
out of or relating to this Agreement and the transactions contemplated hereby (and each of the
Parties agrees not to commence any action, suit or proceeding relating thereto except in such
courts), and further agrees that service of any process, summons, notice or document by U.S.
registered mail to its address set forth below shall be effective service of process of any action,
suit or proceeding brought against any Party in any such court. Each of the Parties hereby
irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or
proceeding arising out of this Agreement or the transactions contemplated hereby, in such state or
federal courts as aforesaid and hereby further irrevocably and unconditionally waives and agrees
not to plead or claim in any such court that any such action, suit or proceeding brought in any
such court has been brought in an inconvenient forum. The Company and Luxco have appointed
Corporation Service Company, which will do business in California as CSC-Lawyers Incorporation
Service, as its authorized agent (the “Authorized Agent”) upon whom process may be served
in any action arising out of or based on this Agreement or the transactions contemplated hereby.
Such appointment shall be irrevocable

Name – Management Shareholders Agrement

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pursuant to a contract that shall be prepaid for a period through December 1, 2010. The
Company and Luxco represent and warrant that the Authorized Agent has agreed to act as such agent
for service of process and agrees to take any and all action, including the filing of any and all
documents and instruments, that may be necessary to continue such appointment in full force and
effect as aforesaid. Service of process upon the Authorized Agent shall be deemed, in every
respect, effective service of process upon the Company and Luxco.

     25. Assignability of Certain Rights by the Company.

          The Company shall have the right to assign any or all of its rights or obligations to purchase
Shares pursuant to Sections 4, 5 and 6 hereof; provided, that the Company shall remain liable for
all of its obligations pursuant to such Sections.

     26. Section 409A.

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

     27. Consent to Shorter Notice.

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

     28. Miscellaneous.

          In this Agreement (i) all references to “dollars” or “$” are to United States dollars and (ii)
the word “or” is not exclusive. If any provision of this Agreement shall be declared illegal, void
or unenforceable by any court of competent jurisdiction, the other provisions shall not be
affected, but shall remain in full force and effect.

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     29. Notices.

     All notices and other communications provided for herein shall be in writing and shall be
deemed to have been duly given if delivered by hand (whether by overnight courier or otherwise) or
sent by registered or certified mail, return receipt requested, postage prepaid, to the Party to
whom it is directed:

               a. If to the Company, to it at the following address:

Avago Technologies Limited

No. 1 Yishun Avenue 7

Singapore 768923

Attn: Adam Clammer

          Kenneth Hao

with a copy to:

Latham & Watkins LLP

135 Commonwealth Drive

Menlo Park, California 94025

Attn: Peter F. Kerman, Esq.

          Joseph M. Yaffe, Esq.

               b. If to the Purchaser, to him at his most recent address as reflected in the Company’s
records, or at such other address as the Party shall have specified by notice in writing to the
other Parties.

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Name – Management Shareholders Agrement

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IN WITNESS WHEREOF, the Parties have executed this Shareholder’s Agreement effective as of the date
first above written.

	 	 	 	 	 	 	 
	 	 	AVAGO TECHNOLOGIES LIMITED	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BALI INVESTMENTS S.A.R.L.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name	 	 	 	 

Name – Management Shareholders Agrement

23

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