Document:

<PAGE>
                                                                    EXHIBIT 10.3

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

October 25, 2004                                BROADCOM CONFIDENTIAL

Mr. Scott A. McGregor

Dear Scott,

It is my pleasure to present you with this offer of employment to join Broadcom
Corporation ("Broadcom" or the "company") in the position of President and Chief
Executive Officer, reporting directly to the Broadcom Board of Directors (the
"Board of Directors"). The specifics of our offer follow below. Certain
capitalized terms not defined in this letter agreement (the "Letter Agreement")
shall have the meanings defined in Appendix II. Appendices I and II are hereby
incorporated as though set forth in full herein.

DUTIES & RESPONSIBILITIES

During your employment as President and Chief Executive Officer, you will be
responsible for the general supervision, direction and control of the business
and affairs of Broadcom and shall have such other duties and responsibilities as
the Board of Directors and the Chairman of the Board shall designate that are
consistent with your position as the most senior executive officer of Broadcom.
As an employee, you will also serve without additional compensation as a member
of the Board of Directors, as a member of any committee of the Board of
Directors to which you may be appointed, and in any position as an officer
and/or a member of the board of directors of any Broadcom subsidiary to which
you may be appointed or elected, as the case may be. You will devote
substantially all of your business time (excluding periods of vacation and
absences made necessary because of illness or other traditionally approved leave
purposes), energy and skill in the performance of your duties for Broadcom.

You agree to abide at all times by Broadcom's policies and procedures as the
same may be revised and updated from time to time, including, without
limitation, the Code of Ethics and Corporate Conduct (the "Code of Conduct"),
Conflicts of Interest Policy, and Policy on Insider Trading and Unauthorized
Disclosures.

Notwithstanding your commitment to devote substantially all of your business
time, energy and skill in the performance of your duties for Broadcom, you may
(i) participate in charitable, civic, educational, professional, community or
industry affairs of your choosing, (ii) serve on the board of directors or
advisory board of up to three other companies, of which one may be a
publicly-held company during the first twelve months of your employment and of
which two may be publicly-held companies after the first twelve months of your
employment, subject in each instance to the prior approval of the Board of
Directors or the designated committee of the Board of Directors (which may be
withheld for any reason or no reason in its sole discretion), and (iii) manage
your and your family's personal investments; provided that (i) the time that you
commit

<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

Mr. Scott A. McGregor                           BROADCOM CONFIDENTIAL
October 25, 2004
Page 2

to such activities is reasonable, individually and in the aggregate, (ii) in all
such activities and at all times you comply with Broadcom's Code of Conduct and
Conflicts of Interest Policy as the same may be revised and updated from time to
time, and (iii) unless otherwise specifically approved by the Board of
Directors, your involvement in such activities shall be in a personal capacity
only and not as a representative or delegate of Broadcom.

BASE SALARY AND BONUS

Your base salary will be $23,076.92 paid bi-weekly (equivalent to a $600,000
annualized rate).

In 2005 the Compensation Committee of the Board of Directors (the "Committee")
will consider establishing an annual cash and/or equity bonus program for
Broadcom that you will help the Committee define. You will be eligible to
participate annually in any so established bonus program so that there is an
incentive and reward structure for achieving successful performance of company
objectives. The Committee is not obligated to establish any bonus program, and
the Committee shall be free to change, revise, amend or cancel any bonus program
that may be established from time to time.

STOCK OPTIONS AND RESTRICTED STOCK UNITS

Upon the commencement of your services as President and Chief Executive Officer
of Broadcom on a full-time basis (the "Start Date"), you will receive a stock
option grant to purchase two million (2,000,000) shares of Broadcom Class A
Common Stock with an exercise price equal to the closing price of our Class A
Common Stock on the NASDAQ National Market as of the Start Date. This option to
purchase stock will vest with respect to 25% of the underlying shares upon the
first anniversary of the Start Date. The remaining 75% of shares subject to this
option will vest in equal monthly installments, on each monthly anniversary of
the Start Date that occurs during the period of thirty-six months following the
first anniversary of the Start Date. The stock option shall have a ten year
term.

On or about the first anniversary of the Start Date, and provided that you are
still employed as Chief Executive Officer of Broadcom or its highest parent
entity, if any, on the grant date, you will receive an additional stock option
grant to purchase five hundred thousand (500,000) shares of Broadcom Class A
Common Stock with an exercise price equal to the closing price of our Class A
Common Stock on the Nasdaq National Market on the grant date. The shares subject
to this option will vest in equal monthly installments, on each monthly
anniversary of the Start Date that occurs during the period of forty-eight
months following the first anniversary of the Start Date. The stock option shall
have a ten year term.

The foregoing grants will be made by the Committee pursuant to Broadcom's 1998
Stock Incentive Plan, as amended and restated. We have provided you with a copy
of the 1998 Stock Incentive Plan together with our current forms of notice of
grant of stock option and stock option agreement. The terms and conditions set
forth therein are subject to change from time to time. Except as otherwise
specifically provided herein, the stock option grants described above will

<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

Mr. Scott A. McGregor                           BROADCOM CONFIDENTIAL
October 25, 2004
Page 3

have the same terms and conditions as those made generally available to
newly-hired Broadcom executives at the time that your respective grants are
made, and will be evidenced by agreements substantially in the forms provided to
you. Such grants and any shares acquired pursuant to such grants shall also be
subject to the restrictions provided in the settlement of Broadcom's shareholder
derivative securities litigation (David v. Wolfen, et al).

On the Start Date, the Committee will award you a grant under the 1998 Stock
Incentive Plan of two hundred thousand (200,000) restricted stock units to
acquire, with no cash payment on your part (other than applicable income and
employment taxes), an equal number of shares of Broadcom Class A Common Stock.
These restricted stock units will generally vest in equal quarterly
installments, on each quarterly date that is generally utilized by Broadcom for
the vesting of restricted stock units issued to other Broadcom employees, or if
no such quarterly date is generally utilized by Broadcom then on each quarterly
anniversary of the Start Date, over the period of thirty-six months following
the Start Date. Vesting of such restricted stock units shall not be subject to
performance criteria other than continued service as an employee. The applicable
number of shares of Class A Common Stock, which unless otherwise agreed shall be
issued to you upon each vesting date of the restricted stock units, will be
vested and unrestricted, except for any applicable restrictions under the
securities laws.

All of the above equity grants and underlying shares of common stock and any
other compensatory equity awards subsequently provided to you will be fully
covered by an effective registration statement on Form S-8 (or other applicable
registration statement) filed by Broadcom with the Securities and Exchange
Commission (the "SEC"). The Committee granting your compensatory equity awards
will be constituted in such a manner that such equity grants are exempt from
liability under Section 16(b) of the Securities Exchange Act of 1934 (the
"Exchange Act"), provided that an applicable exemption from liability continues
to exist under the Exchange Act and applicable regulations promulgated
thereunder.

To the extent permitted from time to time by applicable law, and subject to the
restrictions provided in the settlement of Broadcom's shareholder derivative
securities litigation (David v. Wolfen, et al), you will be able to exercise any
stock options granted to you through a same day sale program established with a
nationally recognized securities brokerage firm of your choice that is
reasonably acceptable to Broadcom.

For your restricted stock units and any other restricted stock or equity awards
that create taxable income to you at the time of vesting, if you are precluded
by law at the time of vesting from selling Broadcom equity in an amount
sufficient to result in proceeds at least equal to the tax obligation created by
such vesting, then you shall, to the extent permitted from time to time by
applicable law, be permitted to satisfy the applicable tax withholding
obligations arising from the vesting of such awards through share withholding by
Broadcom.

To the extent permitted from time to time by applicable law, you will also be
permitted to implement and maintain, at your discretion, an exercise and selling
trading plan covering your Broadcom equity in accordance with Rule 10b5-1 of the
Exchange Act (a "10b5-1 Plan"). To the

<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

Mr. Scott A. McGregor                           BROADCOM CONFIDENTIAL
October 25, 2004
Page 4

extent permitted from time to time by applicable law, you will be permitted to
have an operational 10b5-1 Plan commencing at the time you select (provided that
Broadcom must approve any commencement date that is within the first 90 days
after the Start Date) and continuing during the entire time that you render
services to Broadcom and you may, in your discretion, keep a 10b5-1 Plan active
through the date that is 24 months after cessation of all your services to
Broadcom. Any such plan will be in a form reasonably acceptable to Broadcom and
will be established with a nationally recognized securities brokerage firm of
your choice that is reasonably acceptable to Broadcom.

ANNUAL COMPENSATION REVIEW

Commencing in 2006, your total compensation for services rendered to the company
will be reviewed by the Committee no later than the end of the second fiscal
quarter of each year for possible increases considering the total compensation
of chief executive officers of similarly situated companies and your performance
as President and Chief Executive Officer of Broadcom. The Committee has no
obligation to make any such increase, and you acknowledge that in any event the
mix of your total compensation among salary, bonus and equity components may
well differ from that of such other chief executive officers.

BENEFITS

As a Broadcom employee you will be eligible to participate in our employee
benefits plan, which includes comprehensive medical, dental, vision, life and
both short- and long-term disability insurance. In addition, you may participate
in Broadcom's employee stock purchase plan, which allows employees to purchase a
limited amount of Broadcom Class A Common Stock at a discounted price, a 401(k)
savings program, ten (10) paid holidays, and paid vacation of 10 work days per
year plus an additional work day for each completed year of service, up to a
maximum of 20 work days.

The above benefits shall accrue in accordance with our stated policies and may
change from time-to-time at Broadcom's discretion. We have provided you with a
copy of our current benefits information for your convenience. Effective on your
Start Date, or such other date as may be specified with regard to any particular
benefit, you will be eligible for our current, comprehensive benefits package.
Although the summary plan descriptions and other information from the Human
Resources Department are designed to assist employees, the underlying plan
documents themselves, which are available through the Human Resources
Department, are the controlling documents with regard to these benefits. Should
any questions relating to our benefits package arise, please feel free to
discuss them with our benefits representative when you join Broadcom. At that
time you will be asked to make a decision as to which of the medical plans best
suit your needs.

<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

Mr. Scott A. McGregor                           BROADCOM CONFIDENTIAL
October 25, 2004
Page 5

INDEMNIFICATION AND LIABILITY INSURANCE

You will be covered under Broadcom's insurance policies for directors and
officers liability and will be provided indemnification (covering your services
as an officer, director and/or employee) to the maximum extent permitted by
Broadcom's bylaws and Articles of Incorporation, with such insurance coverage
and indemnification to be on terms no less favorable than those provided as
Broadcom's standard practice for senior executive officers and directors.

RELOCATION AND TEMPORARY LIVING EXPENSES

Broadcom will arrange for and pay for the movement of your household goods and
storage thereof for up to six (6) months. Broadcom will also provide rental
reimbursement for temporary housing for you and your family in the Orange
County, California area for up to six (6) months. To the extent that Broadcom's
payment of moving, storage or rental expenses results in federal or state
taxable income to you, upon your certification to Broadcom of the state and
federal tax rates applicable to you for the applicable period(s), Broadcom will
make a cash payment to you equal to the amount of the additional federal and
state income taxes payable according to such tax rates. Such payment will be
made within thirty (30) days after you provide such certification.

Meals, phone services, utilities and miscellaneous expenses while staying in the
temporary housing are not reimbursable unless otherwise reimbursable as regular
business expenses.

TERMINATION

Employment with Broadcom is at-will. Broadcom may terminate your employment with
or without "Cause" or in the event of your "Disability." You may terminate your
employment with or without "Good Reason," and your employment automatically
terminates upon your death. Any termination of your employment by Broadcom or
you shall only be effective if communicated by a "Notice of Termination."

If Broadcom terminates your employment other than for Cause or Disability, or
you terminate your employment for Good Reason, Broadcom agrees to make the
payments and provide the benefits to you described in Appendix II (the
"Severance Program"). Furthermore, Broadcom will pay certain "Accrued
Obligations" and provide certain "Other Benefits" upon any termination of
employment.

GENERAL TERMS

Please carefully review and consider the entire contents of this Letter
Agreement, including the attached Appendix I, which outlines some of the most
important terms and conditions of employment with Broadcom, and the attached
Appendix II, which contains the terms of the Severance Program. This Letter
Agreement, including the attached Appendices and any agreements relating to
confidentiality and proprietary rights between you and Broadcom, sets forth the
terms of your employment and constitutes the entire agreement between the
parties, and

<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

Mr. Scott A. McGregor                           BROADCOM CONFIDENTIAL
October 25, 2004
Page 6

supersedes all previous communications, representations, understandings, and
agreements, whether oral or written, between the parties or any official or
representative thereof, relating to the subject matter hereof. This Letter
Agreement may not be modified or amended except by a written amendment signed by
the parties hereto.

To indicate your acceptance of Broadcom's offer of employment, please sign and
date this Letter Agreement in the space provided below acknowledging your
acceptance and anticipated employment date, initial the last pages of Appendix I
and Appendix II where indicated, and return all three to me. Please feel free to
contact me if you need additional information or to discuss this offer further.

This offer of employment and Letter Agreement are subject to and conditioned
upon your commencing services as President and Chief Executive Officer on a
full-time basis no later than January 3, 2005.

Scott, the entire Board of Directors and I believe that you will make
significant contributions to Broadcom. We look forward to your joining our
company and contributing to our shared vision and future success.

Sincerely,

BROADCOM CORPORATION

/s/ Henry Samueli
------------------------------------
Henry Samueli, Ph.D.
Chairman of the Board

ACCEPTANCE:

I accept Broadcom Corporation's offer of employment on the terms and conditions
set forth in this Letter Agreement, including the Appendices hereto.

Signed: /s/ Scott A. McGregor
        -----------------------------
        Scott A. McGregor

Date:   October 25, 2004

<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

                  APPENDIX I - ADDITIONAL TERMS AND CONDITIONS

This Appendix I sets forth terms and conditions of the offer of employment made
by Broadcom Corporation ("Broadcom") to Scott A. McGregor. This Appendix I is to
be construed in conjunction with, and is made a part of, the Letter Agreement
offering employment with Broadcom. Capitalized terms not defined in this
Appendix I shall have the meanings defined elsewhere in the Letter Agreement.

1.   Immigration, Examinations and Absence of Conflicts. The IMMIGRATION AND
CONTROL ACT of 1986 requires employers to verify that every new employee is
eligible for employment in the US. This offer of employment is conditional upon
the verification of valid US employment eligibility within three (3) days of
your hire date. An information sheet that outlines various documents you may use
to confirm work eligibility has been provided to you. This offer is also
conditional upon the completion of a comprehensive pre-employment medical
examination and background investigation of you with results satisfactory to
Broadcom in its sole discretion. By accepting Broadcom's offer, you consent to
such examination and investigation by professionals employed for that purpose by
Broadcom and to permit the material results thereof to be released to and
discussed with the Board of Directors, and you agree to complete any information
statements and execute any consents required to facilitate the same.

By accepting Broadcom's offer, you represent that you have satisfied any
obligation you may have to provide notice to any previous employer and that your
employment will not constitute a breach of or contravene the terms of any other
employment agreement or other agreement to which you are a party or otherwise
bound (including but not limited to any agreement that prohibits or restricts
your employment as a result of Broadcom's competition with any entity) thereby
preventing you from performing your duties pursuant to the Letter Agreement, and
this offer and your employment are conditional upon the absence of any such
breach or contravention that would prevent you from performing your duties
pursuant to the Letter Agreement. [ * ]

2.   Policies and Procedures; Confidentiality and Invention Assignment
Agreement. You will be expected to abide by all Broadcom policies and
procedures, including the Code of Conduct, Conflicts of Interest Policy, and
Policy on Insider Trading and Unauthorized Disclosures, and including signing
and complying with the Broadcom Confidentiality and Invention Assignment
Agreement (the "CIAA"). The CIAA (a copy of which has been provided to you)
prohibits, both during and after your employment with Broadcom, unauthorized use
or disclosure to anyone outside of Broadcom of the proprietary or trade secret
information of Broadcom, its customers and its clients, as well as the
disclosure to Broadcom of the proprietary or trade secret information of others.
In addition, this agreement provides for the assignment of employee inventions
to Broadcom and prohibits employees for a period of one year after their
employment from inducing employees or consultants to sever their relationship
with Broadcom. Of course, this description is only a summary, and your actual
obligations will be governed by the CIAA itself.

                                       1
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                               BROADCOM CONFIDENTIAL

3.   Key Man Life Insurance. You agree that at any time during your employment,
at the request of the Board of Directors or a committee thereof and without
additional compensation, you will provide information, complete and sign
applications, and submit to reasonable physical examinations for the purpose of
qualifying for so-called "key man" life insurance to be paid for by and owned by
Broadcom for its own benefit. Broadcom shall have no obligation to apply for or
to obtain such insurance or to maintain in effect any such insurance that may
issue for any specific period after its issuance. You understand and agree that
neither you nor any of your beneficiaries shall have any pecuniary, ownership or
beneficial interest in such insurance whatsoever, or to require that Broadcom
maintain any such insurance in effect, except that if any such insurance is in
effect at the date of termination of your employment for any reason other than
your death or Disability, you shall have the right to have assigned to you any
such policies of insurance that are so assignable, as provided pursuant to
Subsection 1(e) of Appendix II or as otherwise provided by the policies or
practices of Broadcom then in effect, upon payment by you to Broadcom of the
cash surrender value, if any, and any prepaid premiums.

4.   Governing Law. The laws of California shall govern the validity and
interpretation of the Letter Agreement and the Severance Program, without regard
to the conflicts of law principles applicable in California or any other
jurisdiction.

5.   Captions. The captions of the Letter Agreement (including the captions of
its Appendices) are not part of the provisions of this agreement or the
Severance Program and shall have no force or effect.

6.   Notices. All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party, by overnight courier
prepaid, or by registered or certified mail, return receipt requested, postage
prepaid, addressed (if to you) at the address you last provided in writing to
Broadcom, and if to Broadcom, as follows:

            Broadcom Corporation
            16215 Alton Parkway
            Irvine, California 92618
            Attention: Chairman of the Board

or to such other address as either party may specify to the other from time to
time by notice in writing.

Notices and communications shall be effective when actually received by the
addressee. Neither your failure to give any notice required hereunder, nor
defects or errors in any notice given by you, shall relieve Broadcom of any
corresponding obligation under the Severance Program unless, and only to the
extent that, Broadcom is actually and materially prejudiced thereby.

7.   Severability. The invalidity or unenforceability of any provision of this
agreement shall not affect the validity or enforceability of any other
provision.

                                       2
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

8.   Withholding Taxes. Broadcom may withhold from any amounts payable to you
such Federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

9.   No Waiver. Your failure or Broadcom's failure to insist upon strict
compliance with any provision hereof or the failure to assert any right you or
Broadcom may have hereunder, including, without limitation, your right to
terminate employment for Good Reason, shall not be deemed to be a waiver of the
application of such provision or right with respect to any subsequent event or
the waiver of any other provision or right, including any provision or right
under the Severance Program.

10.  Breach and Remedies. Notwithstanding the provisions of Appendix II setting
forth certain payments and benefits that may be made upon the termination of
your employment, you and Broadcom retain any and all of your rights to assert
that the other party has breached the Letter Agreement (or any of the
compensatory equity agreements) by virtue of some action or inaction that does
not constitute "Cause" or "Good Reason" (as defined in Appendix II) and which,
if true, would thereby entitle you to damages or other appropriate relief;
provided, however, that any such action or inaction which is cured within 30
days after notice thereof shall not constitute a breach of the Letter Agreement;
further provided that the measure of your damages for any such breach by the
Company shall be your actual damages resulting therefrom and shall not be
determined with reference to the payments or benefits set forth in Subsections
1(a), 1(b) or 1(e) of Appendix II; and further provided that your resignation
(with or without "Good Reason") or your termination by Broadcom (with or without
"Cause") shall not be deemed a breach of the Letter Agreement.

11.  Execution and Counterparts. The Letter Agreement may be executed in
counterparts, each of which shall be deemed an original as against any party
whose signature appears thereon, and all of which together shall constitute one
and the same instrument. The Letter Agreement shall become binding when one or
more counterparts hereof, individually or taken together, bearing the signatures
of both you and Broadcom's representative are exchanged (including an exchange
of counterparts via confirmed facsimile transmission; provided, however, that if
the initial exchange of counterparts is via confirmed facsimile transmission, we
shall also exchange signed originals as soon thereafter as feasible).
Photographic copies of such signed counterparts may be used in lieu of the
originals for any purpose.

12.  Mandatory Arbitration. ANY AND ALL DISPUTES OR CONTROVERSIES BETWEEN YOU
AND BROADCOM ARISING OUT OF, RELATING TO OR OTHERWISE CONNECTED WITH YOUR
EMPLOYMENT, THE LETTER AGREEMENT, THE BENEFITS PROVIDED UNDER THE SEVERANCE
PROGRAM AS SET FORTH IN APPENDIX II OR THE VALIDITY, CONSTRUCTION, PERFORMANCE
OR TERMINATION OF THIS AGREEMENT SHALL BE SETTLED EXCLUSIVELY BY BINDING
ARBITRATION TO BE HELD IN ORANGE COUNTY, CALIFORNIA. THE ARBITRATION PROCEEDINGS
SHALL BE GOVERNED BY (i) THE NATIONAL RULES FOR THE RESOLUTION OF EMPLOYMENT
DISPUTES THEN IN EFFECT OF THE AMERICAN ARBITRATION ASSOCIATION AND (ii) THE
FEDERAL ARBITRATION

                                       3
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

ACT. TO THE EXTENT YOU ASSERT A CLAIM IN THE ARBITRATION THAT WOULD OTHERWISE BE
REQUIRED TO BE FILED WITH A GOVERNMENTAL AGENCY, BROADCOM SHALL NOT ASSERT AS A
DEFENSE THE FAILURE TO EXHAUST ADMINISTRATIVE REMEDIES WITH RESPECT TO SUCH
CLAIM.

THE ARBITRATOR SHALL HAVE THE SAME, BUT NO GREATER, REMEDIAL AUTHORITY AS WOULD
A COURT HEARING THE SAME DISPUTE. THE DECISION OF THE ARBITRATOR SHALL BE FINAL,
CONCLUSIVE AND BINDING ON THE PARTIES TO THE ARBITRATION AND SHALL BE IN LIEU OF
THE RIGHTS THOSE PARTIES MAY OTHERWISE HAVE TO A JURY TRIAL; PROVIDED, HOWEVER,
THAT SUCH DECISION SHALL BE SUBJECT TO CORRECTION, CONFIRMATION OR VACATION IN
ACCORDANCE WITH THE PROVISIONS AND STANDARDS OF APPLICABLE LAW GOVERNING THE
JUDICIAL REVIEW OF ARBITRATION AWARDS.

THE PREVAILING PARTY IN SUCH ARBITRATION, AS DETERMINED BY THE ARBITRATOR, AND
IN ANY ENFORCEMENT OR OTHER COURT PROCEEDINGS, SHALL BE ENTITLED, TO THE EXTENT
PERMITTED BY LAW, TO REIMBURSEMENT FROM THE OTHER PARTY FOR ALL OF THE
PREVAILING PARTY'S COSTS (EXCLUDING THE ARBITRATOR'S COMPENSATION AND OTHER
ARBITRATION FEES AND COSTS, WHICH SHALL BE PAID BY BROADCOM IN ACCORDANCE WITH
APPLICABLE LAW), EXPENSES AND ATTORNEY'S FEES. JUDGMENT SHALL BE ENTERED ON THE
ARBITRATOR'S DECISION IN ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER
OF SUCH DISPUTE OR CONTROVERSY. NOTWITHSTANDING THE FOREGOING, EITHER PARTY MAY
IN AN APPROPRIATE MATTER APPLY TO A COURT PURSUANT TO CALIFORNIA CODE OF CIVIL
PROCEDURE SECTION 1281.8, OR ANY COMPARABLE STATUTORY PROVISION OR COMMON LAW
PRINCIPLE, FOR PROVISIONAL RELIEF, INCLUDING A TEMPORARY RESTRAINING ORDER OR A
PRELIMINARY INJUNCTION. TO THE EXTENT PERMITTED BY LAW, THE PROCEEDINGS AND
RESULTS, INCLUDING THE ARBITRATOR'S DECISION, SHALL BE KEPT CONFIDENTIAL.

Initials: /s/ SM
          -------
                                       4
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

                         APPENDIX II - SEVERANCE PROGRAM

This Appendix II sets forth terms and conditions of a Severance Program which is
part of the offer of employment made by Broadcom to Scott A. McGregor. This
Appendix II is to be construed in conjunction with, and is made a part of, the
Letter Agreement offering employment with Broadcom. Capitalized terms not
defined in this Appendix II shall have the meanings defined elsewhere in the
Letter Agreement.

1.   Severance Benefits upon Certain Terminations. If your employment by
Broadcom is terminated by you in a Notice of Termination specifying Good Reason,
or by Broadcom in a Notice of Termination specifying no reason or a reason other
than (i) Cause or (ii) your Disability, and your employment has not terminated
automatically as a result of your death, Broadcom agrees, subject to the
conditions and requirements set forth in this Appendix II, to make the payments
and provide the benefits described below (the "Severance Program"):

          (a)  Salary Continuation. Broadcom shall continue to pay your base
     salary for a period of one (1) year following the "Date of Termination"
     (using your then current rate of base salary or, if you terminated your
     employment for Good Reason pursuant to Subsection 5(b) of this Appendix II
     due to an excessive reduction in base salary, then your rate of base salary
     immediately before the reduction).

          (b)  Options and other Equity Awards. Notwithstanding any less
     favorable terms of any stock option agreement or plan, any outstanding
     options to purchase shares of Broadcom's common stock or other equity
     awards granted to you by the Committee (including the restricted stock
     units granted to you) shall (i) immediately on the Date of Termination,
     vest as if you had completed an additional twenty-four (24) months of
     employment after the Date of Termination, and (ii) be exercisable for no
     less than twenty-four (24) months after the Date of Termination (or, if
     earlier, the date the option or other equity award would have expired had
     you remained employed by Broadcom during the entire 24 month period).

          (c)  Bonuses Not Yet Earned. Broadcom shall pay you (i) a cash bonus,
     if any, which was not vested because of a requirement of continued
     employment had not been satisfied by you as of the Date of Termination, but
     with respect to which the applicable performance period had been fully
     completed as of the Date of Termination (for the avoidance of doubt, a
     bonus shall be payable under this Subsection 1(c)(ii) only to the extent
     that any performance criteria with respect to such bonus had been satisfied
     during the applicable performance period), plus (ii) a pro-rata share of
     any cash bonus with respect to any period used for calculating bonuses that
     had been partially completed by you as of the Date of Termination
     (calculated as if you had fully satisfied the performance criteria (if any)
     used to calculate such cash bonuses). Such pro-rata share shall equal the
     fraction of the period for calculating such cash bonuses which preceded the
     Date of Termination and shall be reduced dollar-for-dollar by any related
     bonus payments previously made to you for any portion of your service
     during the same period; provided, however, that in the event that as of the
     Date of Termination it is manifestly apparent that all or part of the
     applicable performance criteria cannot be satisfied for the period for
     calculating such cash bonuses, the pro-rata share of cash bonus payable
     hereunder

                                        1
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

     attributable to the part(s) of the performance criteria that cannot be
     satisfied shall be reduced or eliminated, as the case may be. A bonus
     described in this Subsection 1(c) shall be payable to you only if, prior to
     the Date of Termination, the Committee had specifically designated the
     amount of bonus for which you would be eligible (or had specified your
     percentage participation in an executive bonus pool) as well as the
     performance criteria and any other conditions required to be satisfied in
     order for you to earn the bonus, either in whole or in part.

          (d)  Accrued Salary, Vacation Pay, Expenses, Earned Bonuses and
     Deferred Compensation. Broadcom shall, upon your Date of Termination, pay
     you a lump sum amount equal to the sum of (i) your full base salary through
     the Date of Termination at the rate in effect during such period, (ii) your
     accrued vacation pay, (iii) any unreimbursed business expenses incurred by
     you, (iv) any cash bonus which had been fully earned and vested (i.e., for
     which the applicable performance period and any service requirements for
     vesting had been fully completed) on or before the Date of Termination, but
     which had not been paid as of the Date of Termination (for the avoidance of
     doubt, any such bonus shall be payable only to the extent the applicable
     performance criteria had been satisfied during the applicable performance
     period), and (v) to the extent permissible under applicable law, any vested
     compensation previously deferred by you (including without limitation any
     contributions to the Broadcom 1998 Employee Stock Purchase Plan, as amended
     and restated, together with any accrued earnings or interest thereon), in
     each case to the extent not theretofore paid. Any vested deferred
     compensation that cannot in accordance with applicable law be paid to you
     on your Date of Termination shall be paid at such time and in such manner
     as set forth in the applicable plan or agreement governing the payment of
     that compensation. The amounts referred to in this Subsection 1(d) shall be
     referred to collectively as "Accrued Obligations."

          (e)  Benefit Continuation. For one (1) year after your Date of
     Termination, or such longer period as may be provided by the terms of the
     appropriate plan, program, practice or policy, Broadcom shall, subject to
     your payment of the employee portion of the premiums for coverage at the
     rate generally applicable to other senior executives of Broadcom whose
     employment with Broadcom has not terminated, continue to provide welfare
     benefits (including, without limitation, health, life and disability
     insurance), fringe benefits, and other perquisites to you and your family
     at least equal to those which would have been provided to them if your
     employment had not been terminated in accordance with the most favorable
     plans, practices, programs or policies of Broadcom and its affiliated
     companies applicable generally to other senior executives of Broadcom and
     their families immediately preceding the Date of Termination; provided,
     however, that if you become re-employed with another employer and are
     eligible to receive medical or other welfare benefits under another
     employer-provided plan, the medical and other welfare benefits otherwise
     payable to you hereunder shall be coordinated with the benefits provided
     under such other plan during such applicable period of eligibility such
     that there shall be no duplication of benefits, and for purposes of such
     coordination, the medical and welfare benefits otherwise payable to you
     hereunder shall be secondary to the benefits provided under such other
     plan.

                                       2
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

          Following the one-year period of continued benefits referred to in
     this Subsection 1(e), you and your family shall be given the right to elect
     to continue benefits in all group medical plans for an additional period of
     two (2) years, subject to your payment of the employee portion of the
     premium for such coverage at the rate generally applicable to other senior
     executives of Broadcom whose employment with Broadcom has not terminated.
     The medical coverage provided pursuant to this Subsection 1(e) shall
     satisfy Broadcom's obligation to provide continued coverage under Section
     601 of the Employee Retirement Income Security Act (commonly called "COBRA
     continuation") and Broadcom's obligations (if any) under similar state
     laws. At the end of the period of coverage, you shall have the option to
     have assigned to you any assignable insurance policy owned by Broadcom and
     relating specifically to you, upon payment by you to Broadcom of the cash
     surrender value, if any, and any prepaid premiums. At the end of the period
     of coverage, you will also retain any conversion or continued participation
     rights that you may have under any insurance policies applicable to you,
     which rights you may exercise in your discretion but at your own expense.
     In the event that your participation in any of the plans, programs,
     practices or policies of Broadcom referred to in this Subsection 1(e) is
     barred by the terms of such plans, programs, practices or policies,
     Broadcom shall provide you with benefits substantially similar to those to
     which you would be entitled as a participant in such plans, programs,
     practices or policies. Notwithstanding the foregoing, in no event shall you
     be allowed to participate in the Broadcom Employee Stock Purchase Plan or
     the 401(k) savings plan following your Date of Termination or to receive
     any substitute benefits hereunder in replacement of those particular
     benefits, but you shall be paid the full value of any vested benefits
     accrued to your benefit under such plans prior to the Date of Termination.

          (f)  Other Benefits. To the extent not theretofore paid or provided,
     Broadcom shall timely pay or provide to you any other amounts or benefits
     required to be paid or provided, or which you are eligible to receive,
     under any plan, program, policy, practice, contract or agreement of
     Broadcom and its affiliated companies, including but not limited to any
     benefits payable to you under a plan, policy, practice, etc., referred to
     in Section 10 of this Appendix II (all such other amounts and benefits
     being hereinafter referred to as "Other Benefits"), in accordance with the
     terms of such plan, program, policy, practice, contract or agreement.

2.   Parachute Payments. In the event that any payments or benefits to which you
become entitled in accordance with the provisions of the Severance Program would
otherwise constitute a parachute payment under Section 280G of the U.S. Internal
Revenue Code, then such payments and benefits will be subject to reduction to
the extent necessary to assure that you receive only the greater of (i) the
amount of those payments or benefits which would not constitute such a parachute
payment or (ii) the amount which yields you the greatest after-tax amount of
benefits after taking into account any excise tax imposed on the payments and
benefits provided to you under this letter (or on any other benefits to which
you may be entitled in connection with a change in control or ownership of
Broadcom or the subsequent termination of your employment with Broadcom) under
Section 4999 of the U.S. Internal Revenue Code. To the extent any such reduction
is required, the dollar amount of your salary continuation payments under
Subsection

                                       3
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

1(a) will be reduced first, then the number of options or other equity awards to
be modified pursuant to Subsection 1(b) shall be reduced in such order as shall
be agreed upon by the Committee and you, and then finally your remaining
benefits will be reduced.

3.   Other Terminations. Notwithstanding the provisions of Section 1 of this
Appendix II, if your employment is terminated by reason of your death or by
Broadcom for Cause or for your Disability, or you terminate your employment
without Good Reason, you shall not be entitled to participate in the Severance
Program and your participation in the Severance Program shall terminate without
further obligations to you or your legal representatives under the Severance
Program; provided, however, that Broadcom shall timely pay the Accrued
Obligations and shall timely pay or provide the Other Benefits to you, your
legal representative or your designated beneficiaries, as the case may be, and
further provided, that in the event your employment is terminated by reason of
your death or Disability, then Broadcom shall also timely pay the bonuses
described in Subsection 1(c) above, if any, to you or your legal representative
and, notwithstanding any less favorable terms in any stock option or other
equity award agreement or plan or this Severance Program or the Letter
Agreement, any unvested portion of any stock options or equity awards granted to
you by Broadcom (including the restricted stock units) on or after the date of
the Letter Agreement shall immediately vest in full on the Date of Termination
and remain exercisable by you or your legal representative for 12 months after
the Date of Termination.

4.   Cause. Broadcom may terminate your employment with or without Cause as
defined in this Section 4. For purposes of the Letter Agreement and the
Severance Program, "Cause" shall mean the reasonable and good faith
determination by a majority of Broadcom's Board of Directors that any of the
following events or contingencies exists or has occurred:

          (a)  You materially breached a fiduciary duty to Broadcom, materially
     breached a material term of the Confidentiality and Invention Assignment
     Agreement between you and Broadcom, or materially breached a material term
     or policy set forth or described in Broadcom's Code of Conduct;

          (b)  You are convicted of a felony that involves fraud, dishonesty,
     theft, embezzlement, and/or an act of violence or moral turpitude, or plead
     guilty or no contest (or a similar plea) to any such felony; or

          (c)  You committed an act or an omission that constitutes fraud,
     material negligence, or material misconduct in connection with your
     employment by Broadcom, including but not limited to a material violation
     of applicable material state or federal securities laws. Notwithstanding
     the foregoing, an isolated or occasional failure to file or late filing of
     a report required under Section 16 of the Exchange Act shall not be deemed
     a material violation for purposes of this Subsection 4(c). Furthermore,
     with respect to filing reports or certifications you are required to
     provide under the Exchange Act, with respect to a transaction's compliance
     with the requirements of Rule 144 under the Securities Act of 1933, or with
     respect to the implementation of your 10b5-1 Plan, you shall not have
     committed a material violation for purposes of this Subsection 4(c) if the

                                       4
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

     violation occurred because you relied in good faith on a certification or
     certifications provided by Broadcom or an authorized employee or agent of
     Broadcom, unless you knew or should have known after reasonable diligence
     that such certification was inaccurate, or upon the processes or actions of
     the securities brokerage firm handling your transactions in Broadcom
     equities provided that you have used a nationally recognized securities
     brokerage firm with substantial prior experience in and established regular
     procedures for handling option and equity transactions by executive
     officers of public companies in the United States.

     The foregoing shall constitute an exclusive list of the events or
contingencies that may constitute Cause under the Letter Agreement.

     No termination that is based exclusively upon your commission or alleged
commission of act(s) or omission(s) that are asserted to constitute material
negligence shall constitute Cause hereunder unless you have been afforded notice
of the alleged acts or omissions and have failed to cure such acts or omissions
within 30 days after receipt of such notice.

     If, following the receipt of a Notice of Termination stating that your
termination is for Cause, you believe that Cause does not exist, you may, by
written notice delivered to the Board of Directors within three business (3)
days after receipt of such Notice of Termination, request that your Date of
Termination be delayed to permit you to appeal the Board of Directors'
determination that Cause for such termination existed. If you so request, you
will be placed on administrative leave for a period determined by the Board of
Directors (not to exceed 30 days), during which you will be afforded an
opportunity to request that the Board of Directors reconsider its decision
concerning your termination. If the Board of Directors or an appropriate
committee thereof has not previously provided you with an opportunity to be
heard in person concerning the reasons for termination stated in the Notice of
Termination, the Board of Directors will endeavor in good faith to provide you
with such an opportunity during such period of administrative leave. It is
understood and agreed that any change in your employment status that occurs in
connection with or as a result of such an administrative leave shall not
constitute Good Reason. The Board of Directors may, as a result of such a
request for reconsideration, reinstate your employment, revise the original
Notice of Termination, or affirm the original Notice of Termination. If the
Board of Directors affirms the original Notice of Termination or the period of
administrative leave ends before the Board of Directors takes action, the Date
of Termination shall be the date specified in the original Notice of
Termination. If the Board of Directors reinstates your employment or revises the
original Notice of Termination, then the original Notice of Termination shall be
void and neither its delivery nor its contents shall be deemed to constitute
Good Reason.

5.   Good Reason. You may terminate your employment with or without Good Reason
as defined in this Section 5. For purposes of the Letter Agreement and the
Severance Program, "Good Reason" shall mean:

          (a)  Except as you may agree in writing and except as a result of an
     administrative leave and the related procedure described in the definition
     of Cause, a change in your

                                       5
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

     position (including status, offices, titles and reporting requirements)
     with Broadcom that reduces your authority, duties or responsibilities as in
     effect on the Start Date, or any other action by Broadcom which results in
     a material diminution in such position, authority, duties or
     responsibilities, excluding for this purpose an isolated, insubstantial or
     inadvertent action which is remedied by Broadcom reasonably promptly after
     Broadcom receives your notice thereof; for purposes of this Subsection
     5(a), it will be deemed to be a material reduction or diminution in your
     position or duties if (i) you are not at all times Broadcom's Chief
     Executive Officer and a member of the Board of Directors of Broadcom (or
     its successor), or in lieu thereof if Broadcom (or its successor) has any
     parent entities then you are not at all times the Chief Executive Officer
     and a member of the board of directors of the highest such parent entity,
     (ii) Broadcom (acting through its Board of Directors) [ * ] publicly and
     materially disparages you through any oral or written communications to any
     third party (provided, however, that in no event shall non-public
     communications by or between you and Broadcom or any member of its Board of
     Directors, such as performance reviews, be considered to constitute such
     public and material disparagement), or (iii) Broadcom hires, appoints or
     promotes any person to an executive officer position at Broadcom without
     your prior consent (which you shall not unreasonably withhold);

          (b)  Any reduction in your base salary, as the same may be increased
     from time-to-time, in each case; provided, however, that a reduction or
     series of reductions in your base salary (not exceeding 15% in the
     aggregate) that is part of a broad-based reduction in base salaries for
     management employees and pursuant to which your base salary is not reduced
     by a greater percentage than the reductions applicable to other management
     employees shall not constitute Good Reason;

          (c)  The taking of any action by Broadcom (including the elimination
     of benefit plans without providing substitutes therefor or the reduction of
     your benefits thereunder) that would materially diminish the aggregate
     value of your bonuses and other cash incentive awards and other fringe
     benefits, including executive benefits and perquisites, from the levels in
     effect on the Start Date, by more than fifteen percent (15%) in the
     aggregate; provided, however, that (i) a reduction in your bonuses, cash
     awards or benefits that is part of a broad-based reduction in corresponding
     bonuses, awards or benefits for management employees and pursuant to which
     your bonuses, awards or benefits are not reduced by a greater percentage
     than the reductions applicable to other management employees, and (ii) a
     reduction in your bonuses and other cash incentive awards occurring as a
     result of your failure or Broadcom's failure to satisfy performance
     criteria applicable to such bonuses or awards, shall not constitute Good
     Reason;

          (d)  Broadcom's requiring you to be based at any office or location
     which increases the distance from your home to the office or location by
     more than fifty (50) miles from the distance in effect as of the date that
     such requirement is imposed;

          (e)  Any purported termination by Broadcom of your employment
     otherwise than pursuant to a Notice of Termination (for avoidance of doubt,
     the delivery or contents of a

                                       6
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

     Notice of Termination that is revised or voided under the procedure
     provided in the definition of Cause shall not constitute Good Reason); or

          (f)  Any failure by Broadcom (or any successor) to comply with and
     satisfy Section 12 of this Appendix after receipt of written notice from
     you of such failure and a reasonable cure period of not less than thirty
     (30) days.

     The foregoing shall constitute an exclusive list of the events or
contingencies that may constitute Good Reason under the Letter Agreement.

     Notwithstanding the above, an isolated or inadvertent action or inaction by
Broadcom that causes Broadcom to fail to comply with Subsections 5(b) or 5(c)
and which is cured within ten days of your notifying Broadcom of such action or
inaction shall not constitute Good Reason. Furthermore, no act, occurrence or
condition set forth in this Section 5 shall constitute Good Reason if you
consent in writing to such act, occurrence or condition, whether such consent is
delivered before or after the act, occurrence or condition comes to pass.

6.   Death. Your employment shall terminate automatically upon your death.

7.   Disability. If your Disability occurs while you are employed by Broadcom
and no reasonable accommodation is available to permit you to continue to
perform the essential duties and responsibilities of your position, Broadcom may
give you written notice of its intention to terminate your employment. In such
event, your employment with Broadcom shall terminate effective on the 30th day
after you receive such notice (the "Disability Effective Date"), provided that,
within the 30 days after such receipt, you shall not have returned to performing
your duties. For purposes of the Letter Agreement and the Severance Program,
"Disability" shall mean your absence from your duties with Broadcom on a
full-time basis for 120 consecutive business days as a result of incapacity due
to mental or physical illness which is both (i) determined to be total and
permanent by two (2) physicians selected by Broadcom or its insurers and
acceptable to you or your legal representative, and (ii) entitles you to the
payment of long-term disability benefits from Broadcom's long-term disability
plan commencing immediately upon the Disability Effective Date.

8.   Notice of Termination. For purposes of the Severance Program, a "Notice of
Termination" means a written notice which (i) indicates the specific termination
provision relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
your employment under the provision so indicated, and (iii) if the Date of
Termination (as defined below) is other than the date of receipt of such notice,
specifies the termination date (which date, except in the case of a termination
by you without Good Reason, shall be not more than thirty days after the giving
of such notice). The basis for termination set forth in any Notice of
Termination shall constitute the exclusive set of facts and circumstances upon
which the party may rely to attempt to demonstrate that Cause or Good Reason (as
the case may be) for such termination existed.

                                       7
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

9.   Date of Termination. "Date of Termination" means (i) except as set forth in
the definition of Cause, if your employment is terminated by Broadcom or by you
for any reason other than death or Disability, the date of receipt of the Notice
of Termination or a later date (within the limit set forth in the definition of
Notice of Termination) specified therein, as the case may be, and (ii) if your
employment is terminated by reason of death or Disability, the Date of
Termination shall be the date of your death or the Disability Effective Date, as
the case may be.

10.  Non-exclusivity of Rights. Nothing in the Severance Program shall prevent
or limit your continuing or future participation in any plan, program, policy or
practice provided by Broadcom or any of its affiliated companies and for which
you may qualify, nor shall anything herein limit or otherwise affect such rights
as you may have under any contract or agreement with Broadcom or any of its
affiliated companies. Amounts which are vested benefits or which you are
otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with Broadcom or any of its affiliated companies at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly
modified by the Severance Program.

11.  Full Settlement.

          (a)  Except as specifically set forth in this Appendix or the
     accompanying Letter Agreement, Broadcom's obligation to make the payments
     provided for in the Severance Program and otherwise to perform its
     obligations hereunder shall not be affected by any set-off, counterclaim,
     recoupment, defense or other claim, right or action which Broadcom may have
     against you or others, except only for any advances made to you or for
     taxes that Broadcom is required to withhold by law. In no event shall you
     be obligated to seek other employment or take any other action by way of
     mitigation of the amounts payable to you under any of the provisions of the
     Severance Program and, except regarding certain medical and welfare
     benefits as provided in Subsection 1(e), such amounts shall not be reduced
     whether or not you obtain other employment.

          (b)  Except to the extent precluded by applicable law, to be eligible
     to receive the payments and benefits under the Severance Program (other
     than the Accrued Obligations and Other Benefits, the payment or provision
     of which shall not be conditioned upon your execution of the separation
     agreement described in this Subsection 11(b)), you must, following your
     termination of employment, execute a separation agreement that includes (i)
     a general release (in a form acceptable to Broadcom) in favor of Broadcom
     and its subsidiaries, officers, directors, employees and agents which shall
     cover all claims you may have relating to your employment with Broadcom and
     the termination of that employment, other than claims relating to any
     benefits to which you become entitled under the Severance Program, (ii)
     mutual non-disparagement provisions, and (iii) a provision that precludes
     you from soliciting or inducing Broadcom employees to work for yourself,
     for an entity of which you are an employee or investor, or for any third
     party for a period of two years from the later of the Date of Termination
     or the date of execution of the separation agreement. To be eligible to
     receive the payments and benefits under the Severance Program, you must
     also be and remain in material

                                       8
<PAGE>

                                                Confidential Treatment Requested
            Omitted Portions Marked with [ * ] and Filed Separately with the SEC

                                                BROADCOM CONFIDENTIAL

     compliance with your obligations to Broadcom pursuant to the
     Confidentiality and Invention Assignment Agreement during and subsequent to
     your employment.

12.  Successors.

          (a)  Any benefits payable under the Severance Program are personal to
     you and without the prior written consent of Broadcom shall not be
     assignable by you otherwise than by will or the laws of descent and
     distribution. The benefits under the Severance Program shall inure to the
     benefit of and be enforceable by your legal representatives.

          (b)  Any rights and obligations under the Severance Program shall
     inure to the benefit of and be binding upon Broadcom and its successors and
     assigns.

          (c)  Broadcom will require any successor (whether direct or indirect,
     by purchase, merger, consolidation or otherwise) to all or substantially
     all of the business and/or assets of Broadcom to expressly assume and agree
     in writing to perform its obligations under this agreement and the
     Severance Program in the same manner and to the same extent that Broadcom
     would be required to perform it if no such succession had taken place. As
     used in the Severance Program, "Broadcom" shall include any successor to
     all or substantially all of its business and/or assets, as aforesaid, which
     assumes and agrees to perform the obligations created by the Severance
     Program by operation of law, or otherwise.

Initials: /s/ SM
          -------
                                       9<PAGE>

                                                                    EXHIBIT 10.9

                              BROADCOM CORPORATION
                         NOTICE OF GRANT OF STOCK OPTION

    Notice is hereby given of the following option grant (the "Option") to
purchase shares of the Common Stock of Broadcom Corporation (the "Corporation"):

<TABLE>
    <S>                                <C>
    Optionee:                          Scott A. McGregor
    Grant Date:
    Vesting Commencement Date:
    Exercise Price:                    $ per share
    Number of Option Shares:
    Expiration Date:
    Type of Option:                    Incentive Stock Option or Non-Statutory
                                       Stock Option
</TABLE>

    Exercise Schedule: [for initial grants: The Option shall become exercisable
    for twenty-five percent (25%) of the Option Shares upon Optionee's
    completion of one (1) year of Service measured from the Vesting Commencement
    Date and shall become exercisable for the balance of the Option Shares in
    thirty-six (36) successive equal monthly installments upon Optionee's
    completion of each additional month of Service over the thirty-six (36)
    month period measured from the first anniversary of the Vesting Commencement
    Date.] [For subsequent grants: The Option shall become exercisable in
    forty-eight (48) successive equal monthly installments upon Optionee's
    completion of each additional month of Service over the forty-eight (48)
    month period measured from the first anniversary of the Vesting Commencement
    Date. In no event shall the Option become exercisable for any additional
    Option Shares after Optionee's cessation of Service.] In no event shall the
    Option become exercisable for any additional Option Shares after Optionee's
    cessation of Service.

    Optionee understands and agrees that the Option is granted subject to and in
accordance with the terms of the Broadcom Corporation 1998 Stock Incentive Plan,
as amended and restated (the "Plan"). Optionee further agrees to be bound by the
terms of the Plan and the terms of the Option as set forth in the Stock Option
Agreement attached hereto as Appendix A. Optionee hereby acknowledges receipt of
a copy of the official prospectus for the Plan in the form attached hereto as
Appendix B. A copy of the Plan is available upon request made to the Corporate
Secretary at the Corporation's principal offices. The Option shall also be
governed by (i) the terms of the Addendum to Stock Option Agreement attached
hereto as Appendix C and (ii) the terms of the Special Stock Retention Addendum
to Stock Option Agreement attached hereto as Appendix D.

    No Employment or Service Contract. Nothing in this Notice or in the attached
Stock Option Agreement or in the Plan shall confer upon Optionee any right to
continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or
Subsidiary employing or retaining Optionee) or of Optionee, which rights are
hereby expressly reserved by each, to terminate Optionee's Service at any time
for any reason, with or without cause.

    Definitions. All capitalized terms in this Notice shall have the meaning
assigned to them in this Notice or in the attached Stock Option Agreement.

Date: ___________ __, 200_

Broadcom Corporation

                                            ------------------------------------
                                            Optionee

-------------------------------------       ------------------------------------
By:                                         Address
Title:
                                            ------------------------------------

ATTACHMENTS: A -- STOCK OPTION AGREEMENT; B -- PLAN SUMMARY AND PROSPECTUS;
C -- ADDENDUM TO STOCK OPTION AGREEMENT; D. -- STOCK RETENTION ADDENDUM

<PAGE>

                              BROADCOM CORPORATION

                             STOCK OPTION AGREEMENT

RECITALS

    A. The Board has adopted the Plan for the purpose of retaining the services
of selected Employees, non-employee members of the Board or of the board of
directors of any Parent or Subsidiary and consultants and other independent
advisors who provide services to the Corporation (or any Parent or Subsidiary).

    B. Optionee is to render valuable services to the Corporation (or a Parent
or Subsidiary), and this Agreement is executed pursuant to, and is intended to
carry out the purposes of, the Plan in connection with the Corporation's grant
of an option to Optionee.

    C. All capitalized terms in this Agreement shall have the meaning assigned
to them in the attached Appendix.

    NOW, THEREFORE, it is hereby agreed as follows:

        1. GRANT OF OPTION. The Corporation hereby grants to Optionee, as of the
    Grant Date, an option to purchase up to the number of Option Shares
    specified in the Grant Notice. The Option Shares shall be purchasable from
    time to time during the option term specified in Paragraph 2 at the Exercise
    Price.

        2. OPTION TERM. This option shall have a maximum term of ten (10) years
    measured from the Grant Date and shall accordingly expire at the close of
    business on the Expiration Date, unless sooner terminated in accordance with
    Paragraph 5 or 6.

        3. LIMITED TRANSFERABILITY. This option shall be neither transferable
    nor assignable by Optionee other than by will or by the laws of descent and
    distribution following Optionee's death and may be exercised, during
    Optionee's lifetime, only by Optionee. However, if this option is designated
    a Non-Statutory Option in the Grant Notice, then this option may, in
    connection with the Optionee's estate plan, be assigned in whole or in part
    during Optionee's lifetime to one or more members of the Optionee's
    immediate family or to a trust established for the exclusive benefit of
    Optionee and/or one or more such family members. The assigned portion shall
    be exercisable only by the person or persons who acquire a proprietary
    interest in the option pursuant to such assignment. The terms applicable to
    the assigned portion shall be the same as those in effect for this option
    immediately prior to such assignment.

        4. DATES OF EXERCISE. This option shall become exercisable for the
    Option Shares in one or more installments as specified in the Grant Notice.
    As the option becomes exercisable for such installments, those installments
    shall accumulate, and the option shall remain exercisable for the
    accumulated installments until the Expiration Date or sooner termination of
    the option term under Paragraph 5 or 6. Notwithstanding the foregoing,
    should the Optionee elect to

<PAGE>

    exercise this option during any period during which the Optionee is under
    investigation by the Corporation for Misconduct, then any Option Shares
    acquired by the Optionee as a result of such exercise and/or the net
    proceeds of any sale or sales of those acquired Option Shares (the gross
    sale proceeds less any Exercise Price payment or withholding taxes due the
    Corporation and broker commissions) during such period shall be held by the
    Corporation in escrow until such time as the investigation is satisfactorily
    completed.

        5. CESSATION OF SERVICE/TERMINATION OF OPTION. The option term specified
    in Paragraph 2 shall terminate (and this option shall cease to be
    outstanding) prior to the Expiration Date should any of the following
    provisions become applicable:

           (a) Should Optionee cease to remain in Service for any reason (other
        than death, Permanent Disability or Misconduct) while holding this
        option, then Optionee shall have a period of three (3) months
        (commencing with the date of such cessation of Service) during which to
        exercise this option, but in no event shall this option be exercisable
        at any time after the Expiration Date.

           (b) Should Optionee die while holding this option, then the personal
        representative of Optionee's estate or the person or persons to whom the
        option is transferred pursuant to Optionee's will or in accordance with
        the laws of inheritance shall have the right to exercise this option.
        Such right shall lapse, and this option shall cease to be outstanding,
        upon the earlier of (i) the expiration of the twelve (12)-month period
        measured from the date of Optionee's death or (ii) the Expiration Date.

           (c) Should Optionee cease Service by reason of Permanent Disability
        while holding this option, then Optionee shall have a period of twelve
        (12) months (commencing with the date of such cessation of Service)
        during which to exercise this option. In no event shall this option be
        exercisable at any time after the Expiration Date.

           (d) The applicable post-Service exercise period in effect for this
        option pursuant to the foregoing provisions of this Paragraph 5 shall
        automatically be extended by an additional period of time equal in
        duration to any interval within that otherwise applicable post-Service
        exercise period during which the exercise of this option or the
        immediate sale of the Option Shares acquired hereunder cannot be
        effected in compliance with applicable federal and state securities
        laws, but in no event shall such an extension result in the continuation
        of this option beyond the Expiration Date.

           (e) During the limited period of post-Service exercisability, this
        option may not be exercised in the aggregate for more than the number of
        vested Option Shares for which the option is exercisable at the time of
        Optionee's cessation of Service. Upon the expiration of such limited
        exercise period or (if earlier) upon the Expiration Date, this option
        shall terminate and cease to be outstanding for any vested Option Shares
        for which the option has not been exercised. However, except as set
        forth herein, this option shall, immediately upon Optionee's cessation
        of Service for any reason, terminate and cease to be outstanding with
        respect to any Option Shares in which Optionee is not otherwise at that
        time vested or for which this option is not otherwise at that time
        exercisable.

                                       2
<PAGE>

           (f) Should Optionee's Service be terminated for Misconduct or should
        Optionee engage in Misconduct at any time Optionee holds this option,
        then this option shall terminate immediately and cease to remain
        outstanding.

        6. SPECIAL ACCELERATION OF OPTION.

        (a) This option to the extent outstanding at the time of a Change in
    Control but not otherwise fully exercisable, shall NOT become exercisable on
    an accelerated basis if and to the extent: (i) this option is, in connection
    with the Change in Control, to be assumed by the successor corporation (or
    parent thereof) or otherwise continued in full force and effect pursuant to
    the terms of the Change in Control transaction or (ii) this option is to be
    replaced with a cash incentive program of the successor corporation which
    preserves the spread existing at the time of the Change in Control on the
    Option Shares for which this option is not otherwise at that time
    exercisable (the excess of the Fair Market Value of those Option Shares over
    the aggregate Exercise Price payable for such shares) and provides for
    subsequent payout of that spread in accordance with the same option
    exercise/vesting schedule set forth in the Grant Notice. However, if none of
    the foregoing conditions apply to this option at the time of Change in
    Control, then this option shall automatically accelerate so that such option
    shall, immediately prior to the effective date of that Change in Control,
    become exercisable for all the shares of Common Stock at the time subject to
    this option and may be exercised for any or all of those shares as fully
    vested shares of Common Stock.

        (b) Immediately following the Change in Control, this option shall
    terminate and cease to be outstanding, except to the extent this option is
    assumed by the successor corporation (or parent thereof) in connection with
    the Change in Control or is otherwise to continue in full force and effect
    pursuant to the terms of the Change in Control transaction.

        (c) If this option is assumed in connection with a Change in Control or
    is otherwise to continue in full force and effect, then this option shall be
    appropriately adjusted, immediately after such Change in Control, to apply
    to the number and class of securities which would have been issuable to
    Optionee in consummation of such Change in Control had the option been
    exercised immediately prior to such Change in Control, and appropriate
    adjustments shall also be made to the Exercise Price, provided the aggregate
    Exercise Price shall remain the same. To the extent the actual holders of
    the Corporation's outstanding Common Stock receive cash consideration for
    their Common Stock in consummation of the Change in Control transaction, the
    successor corporation may, in connection with the assumption or continuation
    of this option, substitute one or more shares of its own common stock with a
    fair market value equivalent to the cash consideration paid per share of
    Common Stock in such Change in Control transaction.

        (d) This Agreement shall not in any way affect the right of the
    Corporation to adjust, reclassify, reorganize or otherwise change its
    capital or business structure or to merge, consolidate, dissolve, liquidate
    or sell or transfer all or any part of its business or assets.

                                       3
<PAGE>

        7. ADJUSTMENT IN OPTION SHARES. Should any change be made to the Common
    Stock by reason of any stock split, stock dividend, recapitalization,
    combination of shares, exchange of shares or other change affecting the
    outstanding Common Stock as a class without the Corporation's receipt of
    consideration, appropriate adjustments shall be made to (i) the total number
    and/or class of securities subject to this option and (ii) the Exercise
    Price to reflect such change and thereby preclude a dilution or enlargement
    of benefits hereunder.

        8. SHAREHOLDER RIGHTS. The holder of this option shall not have any
    shareholder rights with respect to the Option Shares until such person shall
    have exercised the option, paid the Exercise Price and any required
    withholding taxes and become a holder of record of the purchased shares.

        9. MANNER OF EXERCISING OPTION.

        (a) To exercise this option with respect to all or any part of the
    Option Shares for which this option is at the time exercisable, Optionee (or
    any other person or persons exercising the option) must take the following
    actions:

            (i) Execute and deliver to the Corporation a Notice of Exercise for
        the Option Shares for which the option is exercised or comply with such
        other procedures as the Corporation may establish for notifying the
        Corporation of the exercise of this option for one or more Option
        Shares.

            (ii) Pay the aggregate Exercise Price for the purchased shares in
        one or more of the following forms:

                (A) cash or check made payable to the Corporation;

                (B) shares of Common Stock held by Optionee (or any other person
            or persons exercising the option) for the requisite period necessary
            to avoid a charge to the Corporation's earnings for financial
            reporting purposes and valued at Fair Market Value on the Exercise
            Date; or

                (C) through a special sale and remittance procedure pursuant to
            which Optionee (or any other person or persons exercising the
            option) shall concurrently provide irrevocable instructions (I) to a
            Corporation-designated brokerage firm(1) to effect the immediate
            sale of the purchased shares and remit to the Corporation, out of
            the sale proceeds available on the settlement date, sufficient funds
            to cover the aggregate Exercise Price payable for the purchased
            shares plus all applicable Federal, state and local income and
            employment taxes required to be withheld by the Corporation by
            reason of such exercise, and (II) to the Corporation to deliver the
            certificates for the purchased shares directly to such brokerage
            firm to complete the sale.

--------

(1) With respect to Section 16 Insiders, the brokerage firm need only be
    reasonably satisfactory to the Corporation for purposes of administering
    such procedure.

                                       4
<PAGE>

                  Except to the extent the sale and remittance procedure is
               utilized in connection with the option exercise, payment of the
               Exercise Price must accompany the Notice of Exercise delivered to
               the Corporation in connection with the option exercise.

            (iii) Furnish to the Corporation appropriate documentation that the
        person or persons exercising the option (if other than Optionee) have
        the right to exercise this option.

            (iv) Make appropriate arrangements with the Corporation (or Parent
        or Subsidiary employing or retaining Optionee) for the satisfaction of
        all Federal, state and local income and employment tax withholding
        requirements applicable to the option exercise.

        (b) As soon as practical after the Exercise Date, the Corporation shall
    issue to or on behalf of Optionee (or any other person or persons exercising
    this option) a certificate for the purchased Option Shares, with the
    appropriate legends affixed thereto.

        (c) In no event may this option be exercised for any fractional shares.

        10. COMPLIANCE WITH LAWS AND REGULATIONS.

        (a) The exercise of this option and the issuance of the Option Shares
    upon such exercise shall be subject to compliance by the Corporation and
    Optionee with all applicable requirements of law relating thereto and with
    all applicable regulations of any stock exchange (or the NASDAQ National
    Market(R), if applicable) on which the Common Stock may be listed for
    trading at the time of such exercise and issuance.

        (b) The inability of the Corporation to obtain approval from any
    regulatory body having authority deemed by the Corporation to be necessary
    to the lawful issuance and sale of any Common Stock pursuant to this option
    shall relieve the Corporation of any liability with respect to the
    non-issuance or sale of the Common Stock as to which such approval shall not
    have been obtained. The Corporation, however, shall use its best efforts to
    obtain all such approvals.

        11. SUCCESSORS AND ASSIGNS. Except to the extent otherwise provided in
    Paragraphs 3 and 6, the provisions of this Agreement shall inure to the
    benefit of, and be binding upon, the Corporation and its successors and
    assigns and Optionee, Optionee's assigns and the legal representatives,
    heirs and legatees of Optionee's estate.

        12. NOTICES. Any notice required to be given or delivered to the
    Corporation under the terms of this Agreement shall be in writing and
    addressed to the Corporation at its principal corporate offices. Any notice
    required to be given or delivered to Optionee shall be in writing and
    addressed to Optionee at the address indicated below Optionee's signature
    line on the Grant Notice. All notices shall be deemed effective upon
    personal delivery or upon deposit in the U.S. mail, postage prepaid and
    properly addressed to the party to be notified.

                                       5
<PAGE>

        13. CONSTRUCTION. This Agreement and the option evidenced hereby are
    made and granted pursuant to the Plan and are in all respects limited by and
    subject to the terms of the Plan. The Plan Administrator shall have the
    discretionary authority to interpret and construe any term or provision of
    the Plan or this Agreement, and such interpretation shall be binding on all
    persons having an interest in this option.

        14. GOVERNING LAW. The interpretation, performance and enforcement of
    this Agreement shall be governed by the laws of the State of California
    without resort to that State's conflict-of-laws rules.

        15. MANDATORY ARBITRATION. ANY AND ALL DISPUTES OR CONTROVERSIES BETWEEN
    OPTIONEE AND THE CORPORATION ARISING OUT OF, RELATING TO OR OTHERWISE
    CONNECTED WITH THIS AGREEMENT OR THE OPTION EVIDENCED HEREBY OR THE
    VALIDITY, CONSTRUCTION, PERFORMANCE OR TERMINATION OF THIS AGREEMENT SHALL
    BE SETTLED EXCLUSIVELY BY BINDING ARBITRATION PURSUANT TO SECTION 12 OF
    APPENDIX I TO THE LETTER AGREEMENT BETWEEN OPTIONEE AND THE CORPORATION
    DATED OCTOBER 25, 2004, WHICH IS INCORPORATED BY REFERENCE HEREIN AS IF SET
    FORTH FULLY HEREIN.

        16. EXCESS SHARES. If the Option Shares covered by this Agreement
    exceed, as of the Grant Date, the number of shares of Common Stock which may
    without shareholder approval be issued under the Plan, then this option
    shall not become exercisable with respect to those excess shares, unless
    shareholder approval of an amendment sufficiently increasing the number of
    shares of Common Stock issuable under the Plan is obtained in accordance
    with the provisions of the Plan.

        17. ADDITIONAL TERMS APPLICABLE TO AN INCENTIVE OPTION. In the event
    this option is designated an Incentive Option in the Grant Notice, the
    following terms and conditions shall also apply to the grant:

            (a) This option shall cease to qualify for favorable tax treatment
        as an Incentive Option if (and to the extent) this option is exercised
        for one or more Option Shares: (A) more than three (3) months after the
        date Optionee ceases to be an Employee for any reason other than death
        or Permanent Disability or (B) more than twelve (12) months after the
        date Optionee ceases to be an Employee by reason of Permanent
        Disability.

            (b) No installment under this option shall qualify for favorable tax
        treatment as an Incentive Option if (and to the extent) the aggregate
        Fair Market Value (determined at the Grant Date) of the Common Stock for
        which such installment first becomes exercisable hereunder would, when
        added to the aggregate value (determined as of the respective date or
        dates of grant) of the Common Stock or other securities for which this
        option or any other Incentive Options granted to Optionee prior to the
        Grant Date (whether under the Plan or any other option plan of the
        Corporation or any Parent or Subsidiary) first become exercisable during
        the same calendar year, exceed One

                                       6
<PAGE>

        Hundred Thousand Dollars ($100,000) in the aggregate. Should such One
        Hundred Thousand Dollar ($100,000) limitation be exceeded in any
        calendar year, this option shall nevertheless become exercisable for the
        excess shares in such calendar year as a Non-Statutory Option.

            (c) Should the exercisability of this option be accelerated upon a
        Change in Control, then this option shall qualify for favorable tax
        treatment as an Incentive Option only to the extent the aggregate Fair
        Market Value (determined at the Grant Date) of the Common Stock for
        which this option first becomes exercisable in the calendar year in
        which the Change in Control occurs does not, when added to the aggregate
        value (determined as of the respective date or dates of grant) of the
        Common Stock or other securities for which this option or one or more
        other Incentive Options granted to Optionee prior to the Grant Date
        (whether under the Plan or any other option plan of the Corporation or
        any Parent or Subsidiary) first become exercisable during the same
        calendar year, exceed One Hundred Thousand Dollars ($100,000) in the
        aggregate. Should the applicable One Hundred Thousand Dollar ($100,000)
        limitation be exceeded in the calendar year of such Change in Control,
        the option may nevertheless be exercised for the excess shares in such
        calendar year as a Non-Statutory Option.

            (d) Should Optionee hold, in addition to this option, one or more
        other options to purchase Common Stock which become exercisable for the
        first time in the same calendar year as this option, then for purposes
        of the foregoing limitations on the exercisability of such options as
        Incentive Options, this option and each of those other options shall be
        deemed to become first exercisable in that calendar year on the basis of
        the chronological order in which they were granted, except to the extent
        otherwise provided under applicable law or regulation.

                                       7
<PAGE>

                                    APPENDIX

    The following definitions shall be in effect under the Agreement:

    A. AGREEMENT shall mean this Stock Option Agreement.

    B. BOARD shall mean the Corporation's Board of Directors.

    C. CHANGE IN CONTROL shall mean a change in ownership or control of the
Corporation effected through any of the following transactions:

        (i) a shareholder-approved merger or consolidation in which securities
    possessing more than fifty percent (50%) of the total combined voting power
    of the Corporation's outstanding securities are transferred to a person or
    persons different from the persons holding those securities immediately
    prior to such transaction, or

        (ii) a shareholder-approved sale, transfer or other disposition of all
    or substantially all of the Corporation's assets in complete liquidation or
    dissolution of the Corporation, or

        (iii) the acquisition, directly or indirectly by any person or related
    group of persons (other than the Corporation or a person that directly or
    indirectly controls, is controlled by, or is under common control with, the
    Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of
    the 1934 Act) of securities possessing more than fifty percent (50%) of the
    total combined voting power of the Corporation's outstanding securities
    pursuant to a tender or exchange offer made directly to the Corporation's
    shareholders.

    D. CODE shall mean the Internal Revenue Code of 1986, as amended.

    E. COMMON STOCK shall mean the Corporation's Class A Common Stock.

    F. CORPORATION shall mean Broadcom Corporation, a California corporation,
and any corporate successor to all or substantially all of the assets or voting
stock of Broadcom Corporation, which shall by appropriate action adopt the Plan.

    G. EMPLOYEE shall mean an individual who is in the employ of the Corporation
(or any Parent or Subsidiary), subject to the control and direction of the
employer entity as to both the work to be performed and the manner and method of
performance.

    H. EXERCISE DATE shall mean the date on which the option shall have been
exercised in accordance with Paragraph 9 of the Agreement.

    I. EXERCISE PRICE shall mean the exercise price per Option Share as
specified in the Grant Notice.

    J. EXPIRATION DATE shall mean the date on which the option expires as
specified in the Grant Notice.

<PAGE>

    K. FAIR MARKET VALUE per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

        (i) If the Common Stock is at the time traded on the NASDAQ National
    Market, then the Fair Market Value shall be the closing selling price per
    share of Common Stock at the close of regular hours trading (i.e., before
    after- hours trading begins) on the NASDAQ National Market on the date in
    question, as such price is reported by the National Association of
    Securities Dealers. If there is no closing selling price for the Common
    Stock on the date in question, then the Fair Market Value shall be the
    closing selling price on the last preceding date for which such quotation
    exists.

        (ii) If the Common Stock is at the time listed on any Stock Exchange,
    then the Fair Market Value shall be the closing selling price per share of
    Common Stock at the close of regular hours trading (i.e., before after-hours
    trading begins) on the date in question on the Stock Exchange determined by
    the Plan Administrator to be the primary market for the Common Stock, as
    such price is officially quoted in the composite tape of transactions on
    such exchange. If there is no closing selling price for the Common Stock on
    the date in question, then the Fair Market Value shall be the closing
    selling price on the last preceding date for which such quotation exists.

    L. GRANT DATE shall mean the date of grant of the option as specified in the
Grant Notice.

    M. GRANT NOTICE shall mean the Notice of Grant of Stock Option, in written
or electronic format, accompanying the Agreement, pursuant to which Optionee has
been informed of the basic terms of the option evidenced hereby.

    N. INCENTIVE OPTION shall mean an option that satisfies the requirements of
Code Section 422.

    O. MISCONDUCT shall mean the commission of any act of fraud, embezzlement or
dishonesty by the Optionee, any unauthorized use or disclosure by such person of
confidential information or trade secrets of the Corporation (or any Parent or
Subsidiary), or any other intentional misconduct by such person adversely
affecting the business or affairs of the Corporation (or any Parent or
Subsidiary) in a material manner. The foregoing definition shall not in any way
preclude or restrict the right of the Corporation (or any Parent or Subsidiary)
to discharge or dismiss the Optionee or any other person in the Service of the
Corporation (or any Parent or Subsidiary) for any other acts or omissions, but
such other acts or omissions shall not be deemed, for purposes of the Plan or
this Agreement, to constitute grounds for termination for Misconduct.

    P. NON-STATUTORY OPTION shall mean an option not intended to satisfy the
requirements of Code Section 422.

    Q. NOTICE OF EXERCISE shall mean the notice of exercise in form and
substance as prescribed by the Corporation.

<PAGE>

    R. OPTION SHARES shall mean the number of shares of Common Stock subject to
the option as specified in the Grant Notice.

    S. OPTIONEE shall mean the person to whom the option is granted as specified
in the Grant Notice.

    T. PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

    U. PERMANENT DISABILITY shall mean the inability of Optionee to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which is expected to result in death or has lasted
or can be expected to last for a continuous period of twelve (12) months or
more.

    V. PLAN shall mean the Corporation's 1998 Stock Incentive Plan.

    W. PLAN ADMINISTRATOR shall mean either the Board or a committee of the
Board acting in its capacity as administrator of the Plan.

    X. SECTION 16 INSIDER shall mean an officer or director of the Corporation
subject to the short-swing profit liabilities of Section 16 of the 1934 Act.

    Y. SERVICE shall mean the Optionee's performance of services for the
Corporation (or any Parent or Subsidiary) in the capacity of an Employee, a
non-employee member of the board of directors or a consultant or independent
advisor, except to the extent otherwise specifically provided in the documents
evidencing the option grant. For purposes of this Agreement, Optionee shall be
deemed to cease Service immediately upon the occurrence of either of the
following events: (i) Optionee no longer performs services in any of the
foregoing capacities for the Corporation or any Parent or Subsidiary or (ii) the
entity for which Optionee is performing such services ceases to remain a Parent
or Subsidiary of the Corporation, even though the Optionee may subsequently
continue to perform services for that entity.

    Z. STOCK EXCHANGE shall mean either the American Stock Exchange or the New
York Stock Exchange.

    AA. SUBSIDIARY shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations beginning with the Corporation, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

<PAGE>

                                    ADDENDUM
                                       TO
                             STOCK OPTION AGREEMENT

    The following provisions are hereby incorporated into, and are hereby made a
part of that certain Stock Option Agreement (the "Option Agreement") by and
between Broadcom Corporation, a California corporation (the "Corporation"), and
Scott A. McGregor ("Optionee") evidencing a stock option granted this day to
Optionee (the "Option") under the terms of the Corporation's 1998 Stock
Incentive Plan, as amended and restated (the "Plan"). The provisions of this
Addendum shall be effective immediately.

    Optionee has entered into an employment agreement with the Corporation
pursuant to that certain letter from the Corporation dated October 25, 2004 (the
"Letter Agreement"). The purpose of this Addendum is to supplement the terms of
the Option Agreement so that those terms conform to the special benefits to
which Optionee will become entitled pursuant to the terms of the Letter
Agreement.

    All capitalized terms in this Addendum, to the extent not otherwise defined
herein, shall have the meanings assigned to them in the Letter Agreement,
including Appendix II thereto.

                             SPECIAL OPTION BENEFITS

    1. If either the Corporation terminates Optionee's employment in a Notice of
Termination specifying no reason or a reason other than Cause or Disability, or
Optionee terminates his employment with the Corporation in a Notice of
Termination specifying Good Reason, and Optionee's employment has not terminated
automatically as a result of Optionee's death, then Optionee shall immediately
become entitled to the following additional benefits to the extent the Option is
at that time outstanding:

        (i) Optionee shall, immediately on the Date of Termination, be credited
    with an additional twenty-four (24) months of employment with the
    Corporation for purposes of the vesting schedule in effect for the Option so
    that Optionee shall be immediately vested in the Option to the same extent
    as if Optionee had completed an additional twenty-four (24) months of
    employment with the Corporation prior to the Date of Termination, and

        (ii) the Option shall remain exercisable, for any or all of the shares
    in which Optionee is vested on the Date of Termination (including the shares
    which vest on an accelerated basis in accordance with subparagraph (i)
    above), until the EARLIER of (A) the expiration of the twenty-four
    (24)-month period measured from the Date of Termination or (B) the specified
    expiration date of the Option term.

    2. If Optionee's employment is terminated by reason of death or Disability,
then Optionee shall, immediately on the Date of Termination, become fully vested
in the Option (to the extent outstanding on such date) and the Option shall
remain exercisable until the EARLIER of (A) the expiration of the twelve
(12)-month period measured form the Date of Termination or (B) the specified
expiration date of the Option term.

<PAGE>

    3. To the extent any of the benefits provided pursuant to this Addendum
shall be deemed to constitute a parachute payment under Section 280G of the
Internal Revenue Code, then those benefits shall be subject to the parachute
payment limitation provisions of the Letter Agreement.

    4. In no event shall Optionee be entitled to any benefits pursuant to this
Addendum unless (i) Optionee shall have executed and delivered to the
Corporation the separation agreement required under Paragraph 11 of Appendix II
to the Letter Agreement and (ii) Optionee is in material compliance with his
obligations to the Corporation pursuant to his Confidentiality and Invention
Assignment Agreement during and subsequent to Optionee's employment.

    5. To the extent the provisions of this Addendum conflict with the
provisions of the Option Agreement (including, without limitation, the
provisions of Paragraph 5 of such Option Agreement), the provisions of this
Addendum shall be controlling.

    6. Except to the extent modified by this Addendum, all the terms and
conditions of the Option Agreement shall continue in full force effect.

    7. Optionee hereby acknowledges that the Option shall cease to qualify for
favorable tax treatment as an incentive stock option under the federal tax laws
(if the Option is designated as an Incentive Stock Option in the Notice of Grant
of Stock Option relating to such Option) if (and to the extent) the Option is
exercised: (A) more than three (3) months after the date Optionee ceases to be
an Employee for any reason other than death or Permanent Disability or (B) more
than twelve (12) months after the date Optionee ceases to be an Employee by
reason of Permanent Disability. For purposes of this Paragraph 7, the terms
"EMPLOYEE" and "PERMANENT DISABILITY" shall have the meanings assigned to them
in the Option Agreement.

         IN WITNESS WHEREOF, BROADCOM CORPORATION has caused this Addendum to be
executed by its duly-authorized officer, and Optionee has executed this
Addendum, all as of the Effective Date specified below.

                                        Broadcom Corporation

                                        ----------------------------------------

                                        By:
                                           -------------------------------------
                                        Title:
                                              ----------------------------------

                                        Optionee

                                        ----------------------------------------
                                        Scott A. McGregor

EFFECTIVE DATE: ________ __, 20__

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]