Document:

<PAGE>
                                                                   EXHIBIT 10.19

                                TENANCY AGREEMENT

                                FOR OFFICE SPACE

              The following Tenancy Agreement is concluded between

                                  Claus Czaika
                        c/o Euro Video Bildprogramm GmbH
                             Oskar-Messter Strasse 15
                                 85737 Ismaning

                  - hereinafter referred to as the "Landlord" -

                                       and

                              SCM Microsystems GmbH
                           Speri-Ring 4 Hettenshausen

                               85276 Pfaffenhofen

                   - hereinafter referred to as the "Tenant" -

DECLARATION ON THE TENANT:

SCM Microsystems GmbH is entered into the Commercial Register at the Neuburg
County Court under Number: HRB 90556.

                            SECTION 1 RENTED PROPERTY

Para 1

The following areas in the property at Oskar-Messter-Strasse 13, 85737 Ismaning
are rented in accordance with the rented area calculation (Annex VII) by
Muhlemeier + Scheller GmbH:

- approx.    414.37 m(2)         Basement (Annex 1a)
- approx.    900.43 m(2)         1st Floor (Annex 1b)
- approx.  1,460.55 m(2)         2nd Floor (Annex 1c)
- approx.    567.36 m(2)         Attic (Annex 1d)
-
-       27 underground car-parking spaces (Annex II)
-       15 outdoor car-parking spaces (Annex III)

                                                                    Page 1 of 11

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Rented areas are all the areas highlighted in orange on the attached plans
(Annex 1) and certain proportions of communal areas. It should be emphasised, by
way of clarification, that for outside walls, the calculation areas (including
for the rent level calculation) span from the outside wall up to and including
the outer edge of the building. Within the highlighted areas, all areas for each
floor, including structural areas and dividing walls are measured and, subject
to the above regulation, used as a basis for the rent level calculation.
Internal walls shared with third-party rented areas are measured at 50%.
Communal areas and areas (see Annex 1, highlighted in yellow) are - if
applicable in consideration of the above stipulations - calculated in line with
the proportion of rented area in each building. The calculation is illustrated
in Annex 7.

Para 2

The spaces marked on the attached Vehicle Parking Plans (Annex II, III) are also
rented. Proportions of the entrance areas, stairways and lift belonging to the
building are also rented. These areas are included in the rent charged Section
4.

Para 3

The undeveloped area is not rented. The wall areas or areas within the building
and outside of the rented areas are not rented.

Para 4

The Landlord arranges the room layout in accordance with the enclosed Layout
Plan (Annex 1 a, b, c, d, e). It is agreed that all changes made to the
facilities and fixtures and fittings over and above the standard equipment shown
on the enclosed Layout Plan (Annex 1 a, b, c, d, e) as a highlighted item
(yellow, red, green, blue) must be carried out by the Tenant and paid for by
him. The Tenant's interior work is commissioned through the Landlord, who will
pass on the exact costs calculated by the contractor to the Tenant. The
commissioning procedure involves the contractor submitting a quotation to both
Landlord and Tenant, which the Tenant must sign and return to the contractor
within 5 working days.

Para 5

The Landlord grants a subsidy of DM 25,000.00 (in words twenty five thousand
Deutschmarks) for the Tenant's interior work on the rented property.

Interior work on the rented property include glass doors, floor tanks, steel
structures for glass dividing walls, modifications in the sanitary area. No
cabling work, regardless of its nature, is taken into account.

                            SECTION 2 PURPOSE FOR USE

Para 1

The areas are used exclusively for office space. The rented property may be used
only for this contractual purpose.

Para 2

Changes to the purpose for use requires prior written approval from the
Landlord. The Landlord may only decline to give approval for good reason.

Para 3

If the contractual use as defined in Paras 1 and 2 becomes impossible, difficult
or otherwise restricted for the Tenant for reasons attributable either to
himself or the nature or operating of his Company, the Tenant may derive no
entitlement to termination or amendment of this Agreement.

                                                                    Page 2 of 11

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                            SECTION 3 TENANCY PERIOD

Para 1

The tenancy arrangement begins on 15.11.2001 and ends 7 years later on
15.11.2008. At the end of the original tenancy period, the Tenant is offered the
option to continue the Agreement for a further three years, i.e. until
15.11.2011.

If the Tenant does not wish to exercise this 3-year option, he must indicate in
writing such intention to the Landlord at least 9 months in advance, i.e. on
15.02.2008, otherwise the option is considered to have been tacitly exercised.

Para 2

At the end of the exercised option period, the tenancy arrangement is extended
by further periods of one year, unless cancelled no later than 6 months before
the end of the tenancy arrangement by either of the contracting parties.
Cancellation must be confirmed in writing.

                        SECTION 4 MONTHLY RENTAL PAYMENTS

4.1     MONTHLY RENTAL PAYMENTS FOR THE PERIOD 01.12.2001 TO 31.12.2004

<TABLE>
<S>                                <C>              <C>           <C>
Basement    approx. 414.37 m(2)    DM 23.80/m(2)    DM  9,862.01  E   5,042.36
1st Floor   approx. 900.43 m(2)    DM 23.80/m(2)    DM 21,430.23  E  10,957.10
2nd Floor   approx. 1,460.55 m(2)  DM 23.80/m(2)    DM 34,761.09  E  17,773.06
Attic       approx. 576.36 m(2)    DM 23.80/m(2)    DM 13,717.37  E   7,013.58

Advance payment for running costs / heating costs

           approx. 3,351.71 m(2)   DM 3.50/m(2)     DM 11,730.98  E   5,997.96

27 underground car-parking
spaces                             DM 100.00/space  DM   2,700.00 E   1,380.49
15 outdoor car-parking
spaces in Oskar-Messter-Str. 13    DM 75.00/space   DM   1,125.00 E     575.20

Total net amount                                                  E  48,739.75
plus VAT at current rate of 16%                                   E   7,798.36

TOTAL GROSS AMOUNT                                                E  56,538.11
</TABLE>

The monthly net rent is increased by 2.0% every 15 months, the first increase
being 01.12.2004. The rent increase is based on the level of rent applicable to
the previous tenancy period. The car-parking spaces listed under Section 1, para
1 however are exempt from this ruling.

                              SECTION 5 SECURITIES

Para 1

The security for all current and future obligations arising from the Tenancy
Agreement, including the obligation arising from any additional usage
arrangements shall be submitted by the Tenant to the Landlord within 14 days of
the Agreement being finalised in the form of an irrevocable, directly liable and
unconditional Guarantee, which is payable on first request and issued by a major
German bank, or an alternative security equivalent to 3 monthly rental payments.
This is equivalent to an amount of DM 250,787.03 / E 128, 225.37. The Bank
Guarantee will be returned to the Tenant at the end of the Tenancy Agreement,
the latest date being 3 months after the rented object has been returned to the
Landlord, subject to the Landlord having no claim against the Tenant in this
respect.

                                                                    Page 3 of 11

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                            SECTION 6 HAND-OVER DATE

Para 1

The rented object is handed over on the basis of the enclosed plan of the
Tenant's interior work (Annex 1) and the enclosed Building Description (Annex
VI) on the following dates:

<TABLE>
<S>              <C>                                    <C>
Basement         Interior work plan before 31.08.01     Hand-over date 15.11.01
1st/2nd Floor    Interior work plan before 07.09.01     Hand-over date 22.11.01
Attic            Interior work plan before 14.09.01     Hand-over date 29.11.01
</TABLE>

in which case certain residual work must be completed before 14.12.2001, unless
such work would severely restrict the IT/Communications cable laying work. A
Report must be prepared during the hand-over procedure and signed by both
parties. The agreed date is considered observed if the legally binding interior
work plan is submitted on time. In the event of each floor's plan not being
available by the stated date, the contracting parties will agree a list of
priorities for the relevant floor, in order to guarantee progress of the
building work. Each hand-over date will be deferred in line with the date the
Tenant has to submit each interior work plan.

Para 2

If the Landlord is unable to comply with this date owing to reasons that are
attributable exclusively to him, the Landlord shall pay to the Tenant, for each
full week by which hand-over of the rented areas is delayed, a contractual
penalty amounting to DM 25,000.00 (in words: twenty five thousand Deutschmarks),
which becomes due immediately. This does not apply if use of the rooms by the
Tenants remains unaffected.

                           SECTION 7 ADDITIONAL COSTS

Para 1

The running costs advance covers all those costs defined by the legal text of
the Calculation Regulation II (see Annex IV to this Agreement). These costs are
paid jointly by the tenants in line with their proportion of the rented areas.
The basis for the calculation is the percentage of the Tenant's rented as a
proportion of the building as a whole (rented area 3,351.71 m(2) of a total area
of 5,144.75 m(2)). The Tenant pays an advance each month against the additional
costs, as specified under Section 4. The Tenant also pays a proportion of all
joint running and maintenance costs for the heating system. The amount is
calculated annually in accordance with a heating cost formula applied by the
billing company, which is based on each Tenant's actual usage. The calculation
period is specified by the billing company in line with standard modalities. The
Tenant pays an advance each month against the heating costs, as specified under
Section 4. The aforementioned rent and additional costs do not include VAT. The
additional costs are calculated annually.

Para 2

The Landlord may request a reasonable increase in the advance payment for the
additional and heating costs by presented the annual computation under the terms
of the legal conditions for future financial years, should it appear that the
annual additional cost amount will exceed the total of the advance payments.

Similarly, if during the course of the financial year, the cost factor on which
the lump-sum advance payment is calculated change, the Landlord may request an
adjustment to the advance for additional and heating costs by presenting an
interim computation.

                                                                    Page 4 of 11

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Para 3

Administration costs are included in the running cost advance.

Para 4

It is emphasised to the Tenant that since this is the first tenancy, the heating
and running costs cited under Section 7 are based on empirical values and
variances may therefore occur on initial computation.

                            SECTION 8 RENTAL PAYMENTS

Para 1

Rental payments plus additional dues (additional and heating costs) and VAT is
payable monthly in advance, no later than the third working day of the month, to
either the Landlord or a person or agency authorised to collect on his behalf,
by transfer to Account Number 924399 at Kreissparkasse Dachau, Sort Code
70051540 (Account Holiday: Housing Co-operative Czaika). Prompt payment depends
on the date on which the funds are received, not the date on which they are
sent.

Para 1.1

If payment is not received on time, the rental arrears attract interest at 5%
above the base rate used by the European Central Bank.

Para 1.2

If the Tenant falls into rental arrears, the payments are offset firstly against
the costs including any legal costs, then against the interest and finally
against the principal sum, the oldest debt being the priority.

                 SECTION 9 COMMUNAL HEATING AND HOT WATER SUPPLY

Para 1

The Landlord is obliged to maintain operation of the communal heating system,
insofar as is dictated by the weather and at least during the period from 1st
October to 30th April.

Para 2

Contrary to Para 1, the hot water supply is guaranteed at all times.

                              SECTION 10 INSURANCE

Buildings insurance (inc. fire, storm, burst pipes) and buildings liability
insurance is arranged by the Landlord. The Tenant arranges a business liability
insurance.

                SECTION 11 CONDITION AND USE OF THE RENTED AREAS

Para 1

The Tenant may use the rented areas only for the operational purposes cited in
Section 2. Changes to the purpose for use requires written approval from the
Landlord.

                                                                    Page 5 of 11

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Para 2

The Tenant may sub-let either all or some of the rented areas. The Landlord will
approve such sub-letting unless good reason exists in respect of the sub-tenant,
as either an individual or legal entity, or in respect of the intended purpose
for use.

The Landlord has today approved a sub-letting arrangement to Dazzle Europe GmbH.

Para 3

The Tenant must ensure that his operation will not cause any unusual,
unreasonable or long-term disturbance to the other tenants in the building or
their visitors.

                 SECTION 12 COMPLIANCE WITH OFFICIAL REGULATIONS

Para 1

The Tenant is solely responsible for obtaining all necessary approvals,
fulfilling official conditions and regulations applicable to his operating his
business within the rented areas.

Para 2

The Tenant is responsible for affixing, maintaining and/or servicing the
necessary fire extinguishers in his rented areas. The fire extinguishers
required in compliance with the Fire Safety Regulation are provided by the
Landlord (also for the Tenant's rented areas).

Para 3

The Tenant must ensure carefully and regularly that the loads permitted by the
Building Inspectorate for the ceilings are not exceeded. Breach of this
regulation will result in having to compensate the Landlord or a third party for
any damage so caused.

                    SECTION 13 REPAIRS AND STRUCTURAL CHANGES

Para 1

The Landlord may arrange with the Tenant to carry out the repairs and structural
changes deemed necessary to maintain the building or the rented areas, avert
impending risks or to make good damage. This also applies, following
consultation with the Tenant, to work which is deemed advisable rather than
necessary, e.g. modernisation of the building and rented areas, provided that
the contractual use and the Tenant's operation are not affected.

The Tenant must, on arrangement, maintain access to the affected rooms; he must
not obstruct or delay execution of the work.

Para 2

The Tenant may only make structural changes, specifically renovations,
refittings, installations, fitting window grills, building or altering
fireplaces, if written approval has been obtained from the Landlord. If the
Landlord grants such an approval, the Tenant is responsible for obtaining
official planning permission and must bear all associated costs.

                                                                    Page 6 of 11

<PAGE>
Para 3

The Tenant is liable for all damage resulting from the building work he carries
out.

                         SECTION 14 ADVERTISING MEASURES

Para 1

The Tenant is authorised to affix an advertising medium to the rented property
following consultation with the Tenant. Before such an advertising medium is
affixed, the Tenant must first agree size, type and colour with the Landlord.

Para 2

This does not affect the requirement to obtain official planning permission,
which remains the sole responsibility of the client.

              SECTION 15 REPAIR AND MAINTENANCE OF THE RENTED AREAS

Para 1

The Tenant bears the costs for on-going repair and maintenance work inside the
rented areas up to a maximum value of DM 500.00 per invoice or a total sum of DM
5,000.00 per calendar year. The Tenant must in particular keep the sanitary
facilities, locks etc. in a usable condition. Damaged glass panels and mirrors
must be replaced by the Tenant. The Landlord will transfer any third-party
claims to the Tenant.

The Tenant is responsible for painting internal walls, ceilings, doors and
radiators. The Landlord is responsible for the cleaning of outside windows,
external sunblinds and the building facades.

Para 2

The Tenant is liable to the Landlord for all damage caused by him breaching his
duty of care, in particular if supply and waste pipes, toilets, heating systems,
etc. are used improperly and the rooms are inadequately ventilated, heated or
insufficiently protected against frost. The Tenant must remove all pipe
blockages up to the main pipe at his own cost. Similarly, the Tenant is
responsible for all damage caused by his dependants, employees, staff,
sub-tenants, visitors, suppliers, craftsmen commissioned or engaged by him.

If existing cable ducts are empty, the Tenant may only use such capacities in
consultation with the Landlord. The Landlord holds the access right to all such
supply and disposal installations and may extend this right to a third party
(e.g. craftsmen, other tenants) by prior arrangement with the Tenant and on
avoiding any adverse effect to the Tenant's business operation.

Para 3

It must be emphasised that any existing sunblinds are not storm-proof. The
Tenant is solely responsible for ensuring that blinds are run up before offices
are vacated during stormy weather, both during and outside of working hours. The
Tenant must pay for all damage caused to the blinds by wind or stormy weather.

                                                                    Page 7 of 11

<PAGE>
                  SECTION 16 EXTRAORDINARY RIGHT OF TERMINATION

Para 1

The Landlord is entitled to an extraordinary right of cancellation during the
contractually agreed tenancy period if:

-       the Tenant is more than two months in arrears with rental payments

-       any other reason exists to justify no-notice termination as defined by
        the regulations of the BGB [German Civil Code]

In the event of justified, extraordinary cancellation, the Tenant is
unconditionally liable to the Landlord, until the end of the agreed tenancy
period following vacation and return of the rented property as per the
Agreement, specifically for the damage sustained by the Landlord, should the
rented object stand empty or have to be rented for a lower sum following the
Tenant's departure.

Until lapse of the tenancy period, the Tenant is entitled to extraordinary
termination if contractual use is not possible for at least 1 month. This
regulation does not affect any further compensation claims.

The Tenant is entitled to nominate a new tenant, the Landlord may only decline a
new tenant if good reason exists (see Section 11, para 2).

                       SECTION 17 LANDLORD'S RIGHT OF LIEN

Para 1

The Tenant undertakes to notify the Landlord immediately of any lien applied to
contributed assets.

Para 2

The Landlord's right of lien as defined by the BGB applies.

                SECTION 18 LANDLORD'S ACCESS TO THE RENTED AREAS

Para 1

During normal business hours, the Landlord and/or his authorised agents may
enter the rented areas, following prior approval by the Tenant, to check the
condition of such or for any other important reason. In the event of impending
risk, access must be granted out of working hours.

Para 2

Should the Landlord wish to sell the property, he and/or his authorised agents
may, following prior approval, enter the rented areas with the potential buyer.
If the Tenancy Agreement is terminated, he and/or his authorised agents may,
following prior announcement, enter the rented areas with the potential buyer
during business hours.

                                                                    Page 8 of 11

<PAGE>
Para 3

The Tenant must ensure that access is possible during his absence. In the event
of extended absences (e.g. works holiday), he must place the key in an easily
accessible place, informing the Landlord of its whereabouts should an emergency
arise.

                      SECTION 19 END OF THE TENANCY PERIOD

Para 1

At the end of the tenancy arrangement, the Tenant must hand-over the rented
areas to the Landlord in a decorated condition ready for occupation by the next
tenants and return all keys. The decorating work, particularly all painting
work, professional cleaning and where necessary renewal of all floor coverings
must be carried out directly before hand-over. Otherwise, the Landlord is
entitled to unlock, clean and arrange for any necessary painting and decorating
work to the rented areas at the cost of the Tenant. This regulation does not
affect any further compensation claims.

Para 2

At the end of the tenancy arrangement, the Tenant must remove all the
installations he has provided and used to equip the rented property and restore
it to the original hand-over condition, carrying out any necessary additional
work. Furthermore, the Landlord may request the restoration of any restroom
areas existing in the attic storey, even if these were part of the hand-over
condition at the start of the tenancy period.

However, the Landlord may demand that the installations provided by the Tenant
and used to equip the rented property are left at the end of the tenancy
arrangement in return for a monetary consideration to be paid by the Landlord,
which is based on current market value, allowing for wear and tear and technical
progress. Tenant and Landlord must declare in good time, that agreements in this
regard can be made before the rooms are cleared.

Para 3

The Tenant is liable for all damage resulting from any building work he carries
out.

                           SECTION 20 RENT REDUCTIONS

Statutory rent reduction regulations apply. The possibility of a rent reduction
is ruled out if, through circumstances not attributable to the Landlord (e.g.
road diversions, roadblocks, excavations etc.) affects commercial use of the
rented areas.

                      SECTION 21 GROUP LANDLORDS OR TENANTS

Individuals or legal entitles in group landlords or tenants are all jointly and
severally liable.

                                                                    Page 9 of 11

<PAGE>
                          SECTION 22 OTHER ARRANGEMENTS

Para 1

The attached House Rules (Annex V) is part of this Agreement and must be signed
by both contracting parties.

Para 2

Additional, verbal arrangements to this Agreement are not valid, subsequent
changes and/or additions are only valid in writing.

Para 3

Should any condition of this Agreement be or become ineffective, either in whole
or in part, the validity of the remaining conditions remain unaffected. In such
an event, the ineffective condition is replaced by another regulation, which
comes closest in its legal nature to the original intention of the parties had
the issue been considered. If the condition is rendered ineffective owing to a
performance or time issue, it will be replaced by the legally permissible
measure.

Para 4

This Agreement is valid for and against any legal successors to the parties.

Para 5

It is agreed that the Tenant will be notified of any other areas in the building
become vacant or rented and where applicable, will be offered to the Tenant for
renting before any marketing activities are carried out. The currently unrented
areas on the ground floor are exempt from this agreement.

Para 6

The Landlord offers to the Tenant a further 10 outdoor car-parking spaces at the
property on Oskar-Messter-Str. 15 / Munchner Strasse, in agreement with the
Tenant, at a unit price of DM 75.00 plus VAT.

            SECTION 23 PLACE OF FULFILMENT AND PLACE OF JURISDICTION

Para 1

The place of fulfilment and the place of jurisdiction for all obligations
arising from this Agreement is Munich.

PAF, 31.08.01                                      31.08.01
----------------------                             ------------------
(Place / Date)                                     (Place / Date)

illegible                                          illegible
----------------------                             ------------------
Tenant                                             Landlord

                                                                   Page 10 of 11

<PAGE>
LIST OF ANNEXES:

Annex I a, b, c, d, e        Layout plan (to be submitted)

Annex II                     Underground car-park plan

Annex III                    Outdoor car-park plan (to be submitted)

Annex IV                     2nd Calculation Regulation

Annex V                      House Rules (to be submitted)

Annex VI                     Building description

Annex VII                    Rented area calculation

                                                                   Page 11 of 11<PAGE>
                                                                   Exhibit 10.26

                             LSI LOGIC CORPORATION

                    WILFRED J. CORRIGAN EMPLOYMENT AGREEMENT

        This Agreement is made by and between LSI Logic Corporation ("the
Company"), and you, Wilfred J. Corrigan, as of September 20, 2001 (the
"Effective Date").

        1. Duties and Scope of Employment.

               (a) Positions and Duties. You will continue to serve as Chief
Executive Officer ("CEO") and Chairman of the Company's Board of Directors
("Chairman"). You will render such business and professional services in the
performance of your duties, consistent with your position within the Company, as
may reasonably be assigned to you by the Board of Directors (the "Board"). If
the Board appoints a different CEO during your term of employment with the
Company, you will serve as the employee Chairman of the Company. Your term of
employment with the Company is referred to as the "Employment Term".

               (b) Obligations. During the Employment Term, you will devote your
full business efforts and time to the Company and such of its subsidiaries as
the Board may designate. During the Employment Term, you will not engage in any
other employment, occupation or consulting activity for any direct or indirect
remuneration without the prior approval of the Board (which approval will not be
unreasonably withheld), except that without the approval of the Board, and to
the extent that such service does not substantially interfere with your duties
under this Agreement, you may serve in any capacity with any civic, educational
or charitable organization and on any board of directors on which you presently
serve.

        2. Employee Benefits. During the Employment Term, you will be eligible
to participate in all Company employee benefit plans that are applicable to
executive officers of the Company, as such plans may exist from time to time and
at a level commensurate with your position.

        3. Vacation. During the Employment Term, you will be entitled to the
same amount of paid vacation time as other executive officers of the Company.

        4. At-Will Employment. Your employment with the Company constitutes
"at-will" employment. You and the Company acknowledge that this employment
relationship may be terminated at any time, upon written notice to the other
party, with or without good cause or for any or no cause, at the option of
either you or the Company. However, as described in this Agreement, you may be
entitled to severance benefits depending upon the circumstances of your
termination of employment.

        5. Business Expenses. The Company will pay or reimburse you for all
business expenses incurred while performing your duties under this Agreement.
Such reimbursements will be in accordance with the Company's established
policies, as they may exist from time to time.

<PAGE>

        6. Compensation.

           (a) Base Salary. During the Employment Term, the Company will pay you
as compensation for your services a base salary as determined by the Board from
time to time (the "Base Salary"). The Base Salary will be paid through payroll
periods that are consistent with the Company's normal payroll practices, but in
any case not less frequently than once per month.

           (b) Annual Bonus. For each calendar year during which you are CEO,
you will be eligible to receive a bonus based upon the achievement of one or
more performance goals specified by the Compensation Committee of the Board (the
"Committee"), as provided in the Company's Chief Executive Officer Incentive
Plan or another similar plan adopted by the Company (the "Bonus Plan"). The
actual amount of the bonus (if any) payable to you for any year will depend upon
the extent to which the applicable performance goal(s) have been satisfied. In
determining the bonus formula for any year, the Committee may (but will not be
required to) specify a target bonus (the "Target Bonus") to be paid if the
performance goal(s) specified by the Committee are exactly 100% achieved (with
the actual bonus payable being increased or decreased for over- or
underachievement of the performance goal(s)). For purposes of Section 7 below,
if the Committee does not specify a Target Bonus for a particular year, your
Target Bonus for that year will be deemed to equal 50% of the maximum annual
bonus payable under the Bonus Plan.

        7. Severance.

           (a) Termination Other than for Cause; Termination as a Result of
Death or Disability. If the Company terminates your employment for any reason
other than "Cause" (as defined below) or if your employment terminates as a
result of your death or "Disability" (as defined below), then you will be
entitled to the following:

               (i) Option Acceleration and Time to Exercise. Any then unexpired
Company stock options that were granted after the Effective Date, your Company
stock option grant no. 018891, dated November 11, 1999 (if then unexpired), and
your Company stock option grant no. 025112, dated April 2, 2001 (if then
unexpired) will immediately become fully vested and exercisable. In addition,
with respect to each option described in the preceding sentence, you will have
the respective full term of each such option to exercise the option.

               (ii) Other Benefits. You will be paid a lump sum equal to: (1)
thirty-six (36) months of your Base Salary (as in effect immediately prior to
the date of your employment termination), and (2) 300% of your Target Bonus for
the year in which the employment termination occurs. In addition, the Company
shall provide you with (a) health, dental and vision coverage benefits during
the period of twenty-four (24) months following the date of your employment
termination, provided, however, that you elect continuation coverage pursuant to
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
("COBRA"), within the time period prescribed pursuant to COBRA, and (b) life
insurance benefits during the period of eighteen (18) months following the date
of your employment termination, at the same level as each of such benefits were
in effect for you on the day immediately preceding the date of your employment
termination.

                                      -2-
<PAGE>

               (iii) Accrued Wages and Vacation; Expenses. The Company will pay
you: (1) any unpaid Base Salary due for periods prior to the date of your
employment termination; (2) all of your accrued and unused vacation through the
date of your employment termination; and (3) following your submission of proper
expense reports, the total unreimbursed amount of all expenses that you
reasonably and necessarily incurred in connection with the business of the
Company prior to the date of your employment termination. These payments will be
made promptly upon your employment termination and within the period of time
mandated by law.

          (b) Certain Voluntary Resignations. If you voluntarily resign as CEO
for any reason other than your death or Disability and the Company asks you to
remain as the employee Chairman and you agree to do so, then you will be
entitled to receive the following:

               (i) Option Vesting and Time to Exercise. The vesting schedule of
any unvested Company stock option granted after the Effective Date that remains
outstanding on the effective date of your resignation (the "Resignation Date"),
of your Company stock option grant no. 018891, dated November 11, 1999 (if then
unexpired and to the extent not yet vested), and of your Company stock option
grant no. 025112, dated April 2, 2001 (if then unexpired and the extent not yet
vested) automatically will be converted to a monthly vesting schedule pursuant
to the following rules. The number of shares that will be scheduled to vest on
each "Monthly Vesting Date" will equal the "Monthly Vesting Amount." The Monthly
Vesting Amount equals the product of the total number of unvested shares covered
by the option on the Resignation Date, and the "Vesting Multiplier." The Vesting
Multiplier equals the reciprocal of the number of full months (but in no event
more than 36) between the Resignation Date and the date on which the option
originally was scheduled to become fully vested (the "Final Vesting Date"). The
Monthly Vesting Date is the monthly anniversary of the Final Vesting Date. The
Monthly Vesting Amount actually will vest on any Monthly Vesting Date only if
you still are Chairman on that Monthly Vesting Date, subject to the following:
if, before your options become fully vested in accordance with the rules of this
Section 7(b)(i), the Company terminates your employment for any reason other
than Cause or if your employment terminates as a result of your death or
Disability, then all of your then unexpired Company stock options (whether
granted before, on or after the Effective Date) will immediately become fully
vested and exercisable. In addition, with respect to each option described in
this Section 7(b)(i), you will have the respective full term of each such option
to exercise the vested part of the option.

               (ii) Examples of Option Vesting Rules. The vesting rules of
Section 7(b)(i) are illustrated by the following examples. Assume that the
Resignation Date is June 1, 2007, and that the Company asks you to remain as
Chairman and you agree to do so. (1) Also assume that you have an option that
covers 240,000 unvested shares on the Resignation Date and the Final Vesting
Date is April 15, 2011. Therefore, the number of full months remaining until the
Final Vesting Date is forty six, and the Vesting Multiplier is the reciprocal of
36. The Monthly Vesting Amount is 6,667 shares (6,655 shares on the last Monthly
Vesting Date, due to rounding). The Monthly Vesting Date is the 15th of each
month, commencing June 15, 2007. (2) Assume the same facts as in the preceding
example, except that the Final Vesting Date is November 20, 2007. Therefore, the
number of full months remaining until the Final Vesting Date is five, and the
Vesting Multiplier is the reciprocal of 5. The Monthly Vesting Amount is 48,000
shares. The Monthly Vesting Date is the 20th of each month, commencing June 20,
2007.

                                      -3-
<PAGE>

               (iii) Other Benefits. You will be paid a lump sum equal to: (1)
thirty-six (36) months of your Base Salary (as in effect immediately prior to
the date of your employment termination), and (2) 300% of your Target Bonus for
the year in which the employment termination occurs. In addition, the Company
shall provide you with (a) health, dental and vision coverage benefits during
the period of twenty-four (24) months following the end of the Employment Term;
provided, however, that you elect continuation coverage pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"),
within the time period prescribed pursuant to COBRA, and (b) life insurance
benefits during the period of eighteen (18) months following the Employment
Term, at the same level as each of such benefits were in effect for you on the
day immediately preceding the date of your employment termination.

               (iv) Accrued Wages and Vacation; Expenses. The Company will pay
you: (1) any unpaid Base Salary due for periods prior to the Resignation Date;
(2) all of your accrued and unused vacation through the Resignation Date; and
(3) following your submission of proper expense reports, the total unreimbursed
amount of all expenses that you reasonably and necessarily incurred in
connection with the business of the Company prior to the Resignation Date. These
payments will be made promptly following the Resignation Date.

           (c) Certain Voluntary Terminations. If you voluntarily terminate your
employment as CEO for any reason other than your death or Disability and the
Company does not ask you to remain as Chairman, then you will be entitled to
receive the following:

               (i) Option Acceleration and Time to Exercise. Any then unexpired
Company stock options that were granted after the Effective Date, your Company
stock option grant no. 018891, dated November 11, 1999 (if then unexpired), and
your Company stock option grant no. 025112, dated April 2, 2001 (if then
unexpired) will immediately become fully vested and exercisable. In addition,
with respect to each option described in the preceding sentence, you will have
the respective full term of each such option to exercise the option.

               (ii) Other Benefits. You will be paid a lump sum equal to: (1)
thirty-six (36) months of your Base Salary (as in effect immediately prior to
the date of your employment termination), and (2) 300% of your Target Bonus for
the year in which the employment termination occurs. In addition, the Company
shall provide you with (a) health, dental and vision coverage benefits during
the period of twenty-four (24) months following the date of your employment
termination, provided, however, that you elect continuation coverage pursuant to
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
("COBRA"), within the time period prescribed pursuant to COBRA, and (b) life
insurance benefits during the period of eighteen (18) months following the date
of your employment termination, at the same level as each of such benefits were
in effect for you on the day immediately preceding the date of your employment
termination.

               (iii) Accrued Wages and Vacation; Expenses. The Company will pay
you: (1) any unpaid Base Salary due for periods prior to the date of your
employment termination; (2) all of your accrued and unused vacation through the
date of your employment termination; and (3) following your submission of proper
expense reports, the total unreimbursed amount of all expenses that you
reasonably and necessarily incurred in connection with the business of the
Company prior

                                      -4-
<PAGE>

to the date of your employment termination. These payments will be made promptly
upon your employment termination and within the period of time mandated by law.

           (d) Termination for Cause; Other Voluntary Terminations. If (1) the
Company terminates your employment for Cause or (2) if you voluntarily terminate
your employment for any reason (other than your death or Disability) and the
Company asks you to remain as Chairman but you do not agree to do so, then you
will receive: (i) the Base Salary owed to you through the date of your
employment termination, (ii) any bonus earned under Section 6(b) prior to the
date of your employment termination, (iii) all accrued vacation, expense
reimbursements and any other benefits due to you through the date of your
employment termination in accordance with the Company's then existing employee
benefit plans and policies, and (iv) such other compensation or benefits from
the Company as may be required by law (for example, COBRA benefits under Section
4980B of the Code) or as part of your other employment-related agreements. Thus,
for example, vesting of your Company stock options will cease upon your
termination of employment and you will have until the earlier of ninety (90)
days after your termination of employment or the normal expiration date of your
option(s) to exercise any vested but unexpired options.

        8. Golden Parachute Excise Tax Gross-Up. In the event that the benefits
provided for in this Agreement or otherwise payable to you constitute "parachute
payments" within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the "Code") and will be subject to the excise tax imposed by
Section 4999 of the Code, then you will receive a payment from the Company
sufficient to pay such excise tax, plus (ii) an additional payment from the
Company sufficient to pay the excise tax and federal and state income and
employment taxes arising from the payments made to you by the Company pursuant
to this sentence. Unless you and the Company otherwise agree in writing, the
determination of your excise tax liability and the amount required to be paid
under this Section 8 will be made in writing by the independent auditors who are
primarily used by the Company immediately prior to the change of control (the
"Accountants"). For purposes of making the calculations required by this Section
8, the Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. You and the
Company will furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this
Section 8. The Company will bear all costs the Accountants may reasonably incur
in connection with any calculations contemplated by this Section 8.

        9. Maximum Deductibility for the Company. To the extent a payment under
this Agreement would be subject to the Section 162(m) limit of the Code, the
Board may elect to defer such payment until the first date when the payment
would not be subject to the limit.

        10. Definition of Terms. The following terms referred to in this
Agreement shall have the following meanings:

            (a) Cause. "Cause" means termination due to your willful engagement
in misconduct that is demonstrably and materially injurious to the Company and
its subsidiaries taken as a whole. No act, or failure to act, on your part will
be considered "willful" unless done, or omitted to be done, by you not in good
faith and without reasonable belief that your action or

                                      -5-
<PAGE>

omission was in the best interest of the Company or its subsidiaries.
Notwithstanding the foregoing, you will not be deemed to have been terminated
for Cause unless and until there shall have been delivered to you a copy of a
resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Company's Board of Directors at a meeting of the
Board called and held for the purpose (after reasonable notice to you and an
opportunity for you, together with your counsel, to be heard before the Board),
finding that in the good faith opinion of the Board you were guilty of
misconduct as set forth above and specifying the particulars thereof in detail.

            (b) Disability. "Disability" means your being unable to perform the
principal functions of your duties due to a physical or mental impairment, but
only if such inability has lasted or is reasonably expected to last for at least
twelve (12) months. The Board will determine whether a Disability exists based
on evidence provided by one or more physicians selected by the Board.

        11. Assignment. This Agreement will be binding upon and inure to the
benefit of (a) your heirs, executors and legal representatives upon your death
and (b) any successor of the Company. Any such successor of the Company will be
deemed substituted for the Company under the terms of this Agreement for all
purposes. For this purpose, "successor" means any person, firm, corporation or
other business entity which at any time, whether by purchase, merger or
otherwise, directly or indirectly acquires all or substantially all of the
assets or business of the Company. None of your rights to receive any form of
compensation payable pursuant to this Agreement may be assigned or transferred
except by will or the laws of descent and distribution. Any other attempted
assignment, transfer, conveyance or other disposition of your right to
compensation or other benefits will be null and void.

        12. Legal Fees. The Company will reimburse you for your reasonable,
direct costs of obtaining counsel to review this Agreement. In addition, the
Company will reimburse all reasonable legal fees and expenses incurred by you in
contesting any termination or in seeking to obtain or enforce any right or
benefit provided by this Agreement.

        13. Notices. All notices, requests, demands and other communications
called for hereunder shall be in writing and will be deemed given (i) on the
date of delivery if delivered personally, (ii) one (1) day after being sent by a
well established commercial overnight service, or (iii) four (4) days after
being mailed by registered or certified mail, return receipt requested, prepaid
and addressed to the parties or their successors at the following addresses, or
at such other addresses as the parties may later designate in writing:

        If to the Company:

        LSI Logic Corporation
        1551 McCarthy Boulevard
        Milpitas, CA 95035

        Attn: Vice President, General Counsel and Corporate Secretary

        If to you:

                                      -6-
<PAGE>

        at your last residential address known by the Company.

        14. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement will continue in full force and effect without said
provision.

        15. Confidentiality. You agree to use your best efforts to maintain in
confidence the existence of this Agreement, the contents and terms of this
Agreement, including any documents incorporated by reference, and the
consideration for this Agreement (hereinafter collectively referred to as
"Employment Information"). You agree to take every reasonable precaution to
prevent disclosure of any Employment Information to third parties, and agree
that there will be no publicity, directly or indirectly, concerning any
Employment Information. You agree to take every precaution to disclose
Employment Information only to those attorneys, accountants, governmental
entities and family members who have a reasonable need to know of such
Employment Information. After termination of employment for any reason, you will
continue to maintain the confidentiality of all Employment Information.

        16. Entire Agreement. This Agreement, the Chief Executive Officer
Incentive Plan, and agreements evidencing the options represent the entire
agreement and understanding between the Company and you concerning your
employment relationship with the Company or any of its subsidiaries, and
supersedes and replaces any and all prior agreements and understandings
concerning your employment relationship with the Company. For example (but not
by way of limitation), your 1998 Change of Control Severance Agreement no longer
is effective and you will not be entitled to receive any benefits under that
agreement.

        17. Arbitration and Equitable Relief.

            (a) Except as provided in Section 16(d) below, you and the Company
agree that to the extent permitted by law, any dispute or controversy arising
out of, relating to, or in connection with this Agreement, or the
interpretation, validity, construction, performance, breach, or termination
thereof will be settled by arbitration to be held in the County of Santa Clara,
California, in accordance with the National Rules for the Resolution of
Employment Disputes then in effect of the American Arbitration Association (the
"Rules"). The arbitrator may grant injunctions or other relief in such dispute
or controversy. The decision of the arbitrator will be final, conclusive and
binding on the parties to the arbitration. Judgment may be entered on the
arbitrator's decision in any court having jurisdiction.

            (b) The arbitrator will apply California law to the merits of any
dispute or claim (with the exception of its conflict of laws provisions). You
hereby expressly consent to the personal jurisdiction of the state and federal
courts located in California for any action or proceeding arising from or
relating to this Agreement and/or relating to any arbitration in which the
parties are participants.

            (c) The Company will pay the direct costs and expenses of the
arbitration. The Company will pay your counsel fees and expenses.

                                      -7-
<PAGE>

               (d) The Company or you may apply to any court of competent
jurisdiction for a temporary restraining order, preliminary injunction, or other
interim or conservatory relief, as necessary to enforce the provisions of this
Agreement, without breach of this arbitration agreement and without abridgement
of the powers of the arbitrator.

               (e) You understand that nothing in this Section 16 modifies your
at-will status. Either the Company or you can terminate the employment
relationship at any time, with or without cause.

               (f) YOU HAVE READ AND UNDERSTAND THIS SECTION 16, WHICH DISCUSSES
ARBITRATION. YOU UNDERSTAND THAT BY SIGNING THIS AGREEMENT, YOU AGREE TO THE
EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING
TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY,
CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING
ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF YOUR RIGHT
TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL
ASPECTS OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO,
THE FOLLOWING CLAIMS:

                   (i) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT;
BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD
FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL
INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION;
NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC
ADVANTAGE; AND DEFAMATION;

                   (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR
MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, THE AMERICANS WITH
DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, AND ANY LAW OF ANY
STATE; AND

                   (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND
REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

        18. No Oral Modification, Cancellation or Discharge. This Agreement may
be changed or terminated only in writing (signed by you and another member of
the Board of Directors).

        19. Withholding. The Company is authorized to withhold, or cause to be
withheld, from any payment or benefit under this Agreement the full amount of
any applicable withholding taxes.

        20. Governing Law. This Agreement will be governed by the laws of the
State of California (with the exception of its conflict of laws provisions).

                                      -8-
<PAGE>

        21. Acknowledgment. You acknowledge that you have had the opportunity to
discuss this matter with and obtain advice from your private attorney, have had
sufficient time to, and have carefully read and fully understand all the
provisions of this Agreement, and are knowingly and voluntarily entering into
this Agreement.

                            [SIGNATURES ON NEXT PAGE]

                                      -9-
<PAGE>

        IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
respective dates set forth below:

        WILFRED J. CORRIGAN

        -----------------------------
        Wilfred J. Corrigan

        LSI LOGIC CORPORATION

        -----------------------------
        Name:  David G. Pursel
        Title: Vice-President, General Counsel, Secretary

                                      -10-

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