Document:

exv10w14

Exhibit 10.14

BROADCOM CORPORATION

1998 STOCK INCENTIVE PLAN

(as Amended and Restated November 11, 2010)

ARTICLE ONE

GENERAL PROVISIONS

     I. PURPOSE OF THE PLAN

     This amended and restated 1998 Stock Incentive Plan is intended to promote the interests of
Broadcom Corporation, a California corporation, by providing eligible persons in the Corporation’s
service with the opportunity to acquire a proprietary interest, or otherwise increase their
proprietary interest, in the Corporation as an incentive for them to remain in such service.

     Capitalized terms not otherwise defined herein shall have the meanings assigned to such terms
in the attached Appendix.

     All share numbers in this restatement have been adjusted to reflect all splits and dividends
of the Corporation’s Common Stock subsequent to April 16, 1998, including the three-for-two stock
split that was effected on February 21, 2006 through the payment of a dividend of one additional
share of Class A common stock for every two shares of Class A common stock outstanding, and one
additional share of Class B common stock for every two shares of Class B common stock outstanding,
as of the record date of February 6, 2006.

     II. STRUCTURE OF THE PLAN

     A. The Plan as hereby amended and restated is divided into three equity incentive programs:

	 	•	 	the Discretionary Grant Program, under which eligible persons may, at the discretion of
the Plan Administrator, be granted options to purchase shares of Common Stock or stock
appreciation rights tied to the value of such Common Stock,
	 
	 	•	 	the Stock Issuance Program, under which eligible persons may be issued shares of Common
Stock pursuant to restricted stock or restricted stock unit awards or other stock-based
awards, made by and at the discretion of the Plan Administrator, that vest upon the
completion of a designated service period and/or the attainment of pre-established
performance milestones, or under which shares of Common Stock may be issued through direct
purchase or as a bonus for services rendered the Corporation (or any Parent or Subsidiary),
and
	 
	 	•	 	the Director Automatic Grant Program, under which Eligible Directors shall automatically
receive restricted stock units at designated intervals over their period of Board service.

     B. The provisions of Articles One and Five shall apply to all equity programs under the Plan
and shall govern the interests of all persons under the Plan.

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     III. ADMINISTRATION OF THE PLAN

     A. The Primary Committee shall have sole and exclusive authority to administer the
Discretionary Grant and Stock Issuance Programs with respect to Section 16 Insiders. Administration
of the Discretionary Grant and Stock Issuance Programs with respect to all other persons eligible
to participate in those programs may, at the Board’s discretion, be vested in the Primary Committee
or a Secondary Committee, or the Board may retain the power to administer those programs with
respect to all such persons. However, any discretionary Awards to members of the Primary Committee
must be authorized and approved by a disinterested majority of the Board.

     B. Members of the Primary Committee or any Secondary Committee shall serve for such period as
the Board may determine and may be removed by the Board at any time. The Board may also at any time
terminate the functions of any Secondary Committee and reassume all powers and authority previously
delegated to such committee.

     C. Each Plan Administrator shall, within the scope of its administrative functions under the
Plan, have full power and authority (subject to the provisions of the Plan) to establish such rules
and regulations as it may deem appropriate for proper administration of the Discretionary Grant and
Stock Issuance Programs and to make such determinations under, and issue such interpretations of,
the provisions of those programs and any outstanding Awards thereunder as it may deem necessary or
advisable. Decisions of the Plan Administrator within the scope of its administrative functions
under the Plan shall be final and binding on all parties who have an interest in the Discretionary
Grant and Stock Issuance Programs under its jurisdiction or any Award thereunder.

     D. Service on the Primary Committee or the Secondary Committee shall constitute service as a
Board member, and members of each such committee shall accordingly be entitled to full
indemnification and reimbursement as Board members for their service on such committee. No member
of the Primary Committee or the Secondary Committee shall be liable for any act or omission made in
good faith with respect to the Plan or any Award under the Plan.

     E. Administration of the Director Automatic Grant Program shall be self-executing in
accordance with the terms of that program, and no Plan Administrator shall exercise any
discretionary functions with respect to any Award under that program.

     IV. ELIGIBILITY

     A. The persons eligible to participate in the Discretionary Grant and Stock Issuance Programs
are as follows:

     (i) Employees,

     (ii) non-employee members of the Board or the board of directors of any Parent or
Subsidiary, and

     (iii) consultants and other independent advisors who provide services to the Corporation
(or any Parent or Subsidiary).

     B. Each Plan Administrator shall, within the scope of its administrative jurisdiction under
the Plan, have full authority to determine (i) with respect to Awards made under the Discretionary
Grant Program, which eligible persons are to receive such Awards, the time or times when those
Awards are to be made, the number of shares to be covered by each such Award, the status of any
awarded option as either an Incentive Option or a Non-Statutory Option, the exercise price per
share in effect for each Award (subject

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to the limitations set forth in Article Two), the time or times when each Award is to vest and
become exercisable and the maximum term for which the Award is to remain outstanding, and (ii) with
respect to Awards under the Stock Issuance Program, which eligible persons are to receive such
Awards, the time or times when the Awards are to be made, the number of shares subject to each such
Award, the vesting schedule (if any) applicable to the shares subject to such Award, and the cash
consideration (if any) payable for such shares.

     C. The Plan Administrator shall have the absolute discretion to grant options or stock
appreciation rights in accordance with the Discretionary Grant Program and to effect stock
issuances or other stock-based awards in accordance with the Stock Issuance Program.

     D. Eligible Directors for purposes of the Director Automatic Grant Program shall be limited
to members of the Board who are not, at the time of such determination, employees of the
Corporation (or any Parent or Subsidiary). However, a Board member who has previously been in the
employ of the Corporation (or any Parent or Subsidiary) shall not be eligible to receive an Award
under the Director Automatic Grant Program at the time he or she first becomes a non-employee Board
member, but shall be eligible to receive periodic Awards under the Director Automatic Grant Program
while he or she continues to serve as an Eligible Director.

     V. STOCK SUBJECT TO THE PLAN

     A. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired
Common Stock, including shares repurchased by the Corporation on the open market. Subject to the
automatic share increase provisions of Section V.B. of this Article One and any additional shares
authorized by the vote of the Board and approved by the shareholders, as of November 11, 2010 the
number of shares of Common Stock reserved for issuance over the term of the Plan shall not exceed
487,144,294 shares.1 To the extent any unvested shares of Common Stock outstanding under
the Predecessor Plans as of the Original Effective Date are subsequently repurchased by the
Corporation, at the option exercise price paid per share, in connection with the holder’s
termination of Service prior to vesting in those shares, the repurchased shares shall be added to
the reserve of Common Stock available for issuance under the Plan, but in no event shall such
addition exceed 27,000,000 shares.

     B. The number of shares of Common Stock available for issuance under the Plan shall
automatically increase on the first trading day of January each calendar year during the term of
the Plan by an amount equal to four and one-half percent (4.5%) of the total number of shares of
Class A and Class B Common Stock outstanding on the last trading day in December of the immediately
preceding calendar year, but in no event shall any such annual increase exceed 45,000,000 shares.

     C. No one person participating in the Plan may be granted Awards for more than 9,000,000
shares of Common Stock in the aggregate per calendar year.

     D. Shares of Common Stock subject to outstanding Awards under the Plan (including options
incorporated into this Plan from the Predecessor Plans) shall be available for subsequent issuance
under the Plan to the extent (i) those Awards expire or terminate for any reason prior to the
issuance of the shares of Common Stock subject to those Awards or (ii) the Awards are cancelled in
accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under
the Plan and subsequently cancelled or repurchased by the Corporation at the original exercise or
issue price paid per share pursuant

 

			
	1	 	The Common Stock issuable under the Plan
shall be Class A Common Stock, except to the extent such stock is to be issued
upon the exercise of outstanding options incorporated from the Predecessor
Plans. For those options, the issuable stock shall be Class B Common Stock.

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to the Corporation’s repurchase rights under the Plan shall be added back to the number of
shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for
subsequent reissuance under the Plan. All shares that become available for reissuance under the
Plan, including the shares of Class B Common Stock subject to the outstanding options incorporated
into this Plan from the Predecessor Plans that expire or terminate unexercised and any unvested
shares of Class B Common Stock repurchased by the Corporation pursuant to its repurchase rights,
shall be issuable solely as Class A Common Stock. In addition, should the exercise price of an
option under the Plan be paid with shares of Common Stock, the authorized reserve of Common Stock
under the Plan shall be reduced only by the net number of shares issued under the exercised stock
option. Should shares of Common Stock otherwise issuable under the Plan be withheld by the
Corporation in satisfaction of the withholding taxes incurred in connection with the issuance,
exercise or vesting of an Award under the Plan, the number of shares of Common Stock available for
issuance under the Plan shall be reduced only by the net number of shares issued with respect to
that Award.

     E. If any change is made to the Common Stock by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares, spin-off transaction or other change
affecting the outstanding Common Stock as a class without the Corporation’s receipt of
consideration or should the value of outstanding shares of Common Stock be substantially reduced as
a result of a spin-off transaction or an extraordinary dividend or distribution, appropriate
adjustments shall be made by the Plan Administrator to (i) the maximum number and/or class of
securities issuable under the Plan, (ii) the maximum number and/or class of securities for which
any one person may be granted Awards under the Plan per calendar year, (iii) the number and/or
class of securities for which restricted stock unit awards are subsequently to be made under the
Director Automatic Grant Program to new and continuing Eligible Directors, (iv) the number and/or
class of securities and the exercise or base price per share (or any other cash consideration
payable per share) in effect under each outstanding Award under the Discretionary Grant Program and
the Director Automatic Grant Program, (v) the number and/or class of securities and exercise price
per share in effect under each outstanding option incorporated into this Plan from the Predecessor
Plans, (vi) the number and/or class of securities subject to each outstanding Award under the Stock
Issuance Program and the cash consideration (if any) payable per share thereunder, (vii) the
maximum number and/or class of securities by which the share reserve may increase automatically
each calendar year pursuant to the provisions of Section V.B of this Article One and (viii) the
maximum number and/or class of securities that may be added to the Plan through the repurchase of
unvested shares issued under the Predecessor Plans. Similar adjustments shall be made to the number
of shares of Class B Common Stock issuable under the Plan and the number of shares subject to
outstanding stock options for Class B shares and exercise price per share in effect under those
options in the event of any similar changes to the outstanding shares of Class B Common Stock. To
the extent such adjustments are to be made to outstanding Awards, those adjustments shall be
effected in a manner that shall preclude the enlargement or dilution of rights and benefits under
those Awards. The adjustments determined by the Plan Administrator shall be final, binding and
conclusive.

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ARTICLE TWO

DISCRETIONARY GRANT PROGRAM

     I. OPTION TERMS

     Each option shall be evidenced by one or more documents in the form approved by the Plan
Administrator; provided, however, that each such document shall comply with the terms specified
below. Each document evidencing an Incentive Option shall, in addition, be subject to the
provisions of the Plan applicable to such options.

     A. Exercise Price.

     1. The exercise price per share shall be fixed by the Plan Administrator but shall not be
less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the
option grant date.

     2. The exercise price shall become immediately due upon exercise of the option and shall be
payable in one or more of the forms specified below:

     (i) cash or check made payable to the Corporation,

     (ii) shares of Common Stock valued at Fair Market Value on the Exercise Date and held for
the period (if any) necessary to avoid any additional charges to the Corporation’s earnings for
financial reporting purposes, or

     (iii) to the extent the option is exercised for vested shares, through a special sale and
remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable
instructions to (a) a brokerage firm (designated by the Corporation)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 (b)
the Corporation to deliver the certificates for the purchased shares directly to such brokerage
firm to complete the sale, or

     (iv) if Optionee ceases Service for any reason other than death, Permanent Disability or
Misconduct, and the entire exercise period applicable to the option remaining after such
cessation of Service falls within a market blackout period which the Corporation may impose
from time to time the Plan Administrator may, in its discretion, permit the Corporation (either
at the time the option is granted or at any time thereafter) to (a) automatically exercise such
portion of the option which has not been exercised previously on the last business day of the
exercise period and (b) automatically withhold on such day a number of shares of Common Stock
subject to the option having a Fair Market Value (measured as of the exercise date) equal to
(i) the aggregate exercise price of the shares of Common Stock with respect to which the option
is being exercised and (ii) the amount necessary to satisfy any applicable withholding taxes;
provided, that such automatic exercise shall only occur if the Fair Market Value per share on
the last business day of the exercise period of the option is equal to or greater than 101% of
the exercise price per share of the option and, provided, further, that the Plan Administrator
shall have the discretionary authority to revoke or

 

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

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amend this Section I.A.2.iv. of this Article Two (and any related provisions in an
applicable option agreement) at any time without the consent of Optionee.

     Except to the extent the procedure set forth in either Section I.A.2.iii. or Section I.A.2.iv.
of this Article Two is utilized, payment of the exercise price for the purchased shares must be
made on the Exercise Date.

     B. Exercise and Term of Options. Each option shall be exercisable at such time or
times, during such period and for such number of shares as shall be determined by the Plan
Administrator and set forth in the documents evidencing the option. However, no option shall have a
term in excess of ten (10) years measured from the option grant date. An option shall not be
exercisable for any fractional shares.

     C. Effect of Termination of Service.

	 	1.	 	The following provisions shall govern the exercise of any options held by the Optionee at
the time of cessation of Service or death:

     (i) Any option outstanding at the time of the Optionee’s cessation of Service for any
reason shall remain exercisable for such period of time thereafter as shall be determined by
the Plan Administrator and set forth in the documents evidencing the option or as otherwise
specifically authorized by the Plan Administrator in its sole discretion pursuant to an express
written agreement with Optionee, but no such option shall be exercisable after the expiration
of the option term.

     (ii) Any option held by the Optionee at the time of death and exercisable in whole or in
part at that time may be subsequently exercised by the personal representative of the
Optionee’s estate or by the person or persons to whom the option is transferred pursuant to the
Optionee’s will or the laws of inheritance or by the Optionee’s designated beneficiary or
beneficiaries of that option.

     (iii) Should the Optionee’s Service be terminated for Misconduct or should the Optionee
otherwise engage in Misconduct while holding one or more outstanding options under this Article
Two, all those options shall terminate immediately and cease to be outstanding.

     (iv) During the applicable post-Service exercise period, the option may not be exercised
in the aggregate for more than the number of vested shares for which that option is at the time
exercisable. No additional shares shall vest under the option following the Optionee’s
cessation of Service, except to the extent (if any) specifically authorized by the Plan
Administrator in its sole discretion pursuant to an express written agreement with Optionee.
Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of
the option term, the option shall terminate and cease to be outstanding for any shares for
which the option has not been exercised.

     2. The Plan Administrator shall have complete discretion, exercisable either at the time an
option is granted or at any time while the option remains outstanding, to:

     (i) extend the period of time for which the option is to remain exercisable following the
Optionee’s cessation of Service from the limited exercise period otherwise in effect for that
option to such greater period of time as the Plan Administrator shall deem appropriate, but in
no event beyond the expiration of the option term, and/or

     (ii) permit the option to be exercised, during the applicable post-Service exercise
period, not only with respect to the number of vested shares of Common Stock for which such
option is exercisable at

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the time of the Optionee’s cessation of Service but also with respect to one or more
additional installments in which the Optionee would have vested had the Optionee continued in
Service.

     D. Shareholder Rights. The holder of an option shall have no shareholder rights with
respect to the shares subject to the option until such person shall have exercised the option, paid
the exercise price for and become a holder of record of the purchased shares.

     E. Repurchase Rights. The Plan Administrator shall have the discretion to grant
options that are exercisable for unvested shares of Common Stock. Should the Optionee cease Service
while holding such unvested shares, the Corporation shall have the right to repurchase, at the
exercise price paid per share, any or all of those unvested shares. The terms upon which such
repurchase right shall be exercisable (including the period and procedure for exercise and the
appropriate vesting schedule for the purchased shares) shall be established by the Plan
Administrator and set forth in the document evidencing such repurchase right.

     F. Transferability of Options. The transferability of options granted under the Plan
shall be governed by the following provisions:

     (i) Incentive Options. During the lifetime of the Optionee, Incentive Options shall
be exercisable only by the Optionee and shall not be assignable or transferable other than by
will or the laws of inheritance following the Optionee’s death.

     (ii) Non-Statutory Options. Non-Statutory Options shall be subject to the same
limitation on transfer as Incentive Options, except that the Plan Administrator may structure one
or more Non-Statutory Options so that the option may be assigned in whole or in part during the
Optionee’s lifetime by gift or pursuant to a domestic relations order to one or more Family
Members of the Optionee or to a trust established exclusively for the Optionee and/or one or more
such Family Members. The assigned portion may only be exercised by the person or persons who
acquire a proprietary interest in the option pursuant to the assignment. The terms applicable to
the assigned portion shall be the same as those in effect for the option immediately prior to
such assignment and shall be set forth in such documents issued to the assignee as the Plan
Administrator may deem appropriate.

     (iii) Beneficiary Designations. Notwithstanding the foregoing, the Optionee may
designate one or more persons as the beneficiary or beneficiaries of his or her outstanding
options under this Article Two (whether Incentive Options or Non-Statutory Options), and those
options shall, in accordance with such designation, automatically be transferred to such
beneficiary or beneficiaries upon the Optionee’s death while holding those options. Such
beneficiary or beneficiaries shall take the transferred options subject to all the terms and
conditions of the applicable agreement evidencing each such transferred option, including
(without limitation) the limited time period during which the option may be exercised following
the Optionee’s death.

     II. INCENTIVE OPTIONS

     The terms specified below, together with any additions, deletions or changes thereto imposed
from time to time pursuant to the provisions of the Code governing Incentive Options, shall be
applicable to all Incentive Options. Except as modified by the provisions of this Section II, all
the provisions of Articles One, Two and Five shall be applicable to Incentive Options. Options that
are specifically designated as Non-Statutory Options when issued under the Plan shall not
be subject to the terms of this Section II.

     A. Eligibility. Incentive Options may only be granted to Employees.

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     B. Exercise Price. The exercise price per share shall not be less than one hundred
percent (100%) of the Fair Market Value per share of Common Stock on the option grant date.

     C. Dollar Limitation. The aggregate Fair Market Value of the shares of Common Stock
(determined as of the respective date or dates of grant) for which one or more options granted to
any Employee under the Plan (or any other option plan of the Corporation or any Parent or
Subsidiary) may for the first time become exercisable as Incentive Options during any one calendar
year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee holds two (2) or more such options that become exercisable for the first time in the same
calendar year, then for purposes of the foregoing limitation on the exercisability of those options
as Incentive Options, such 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.

     D. 10% Shareholder. If any Employee to whom an Incentive Option is granted is a 10%
Shareholder, then the exercise price per share shall not be less than one hundred ten percent
(110%) of the Fair Market Value per share of Common Stock on the option grant date, and the option
term shall not exceed five (5) years measured from the option grant date.

     III. STOCK APPRECIATION RIGHTS

     A. Authority. The Plan Administrator shall have full power and authority,
exercisable in its sole discretion, to grant stock appreciation rights in accordance with this
Section III to selected Optionees or other individuals eligible to receive option grants under the
Discretionary Grant Program.

     B. Types. Two types of stock appreciation rights shall be authorized for issuance
under this Section III: (i) tandem stock appreciation rights (“Tandem Rights”), and (ii) standalone
stock appreciation rights (“Standalone Rights”).

     C. Tandem Rights. The following terms and conditions shall govern the grant and
exercise of Tandem Rights.

     1. One or more Optionees may be granted a Tandem Right, exercisable upon such terms and
conditions as the Plan Administrator may establish, to elect between the exercise of the
underlying stock option for shares of Common Stock or the surrender of that option in exchange
for a distribution from the Corporation in an amount equal to the excess of (i) the Fair Market
Value (on the option surrender date) of the number of shares in which the Optionee is at the time
vested under the surrendered option (or surrendered portion thereof) over (ii) the aggregate
exercise price payable for such vested shares.

     2. No such option surrender shall be effective unless it is approved by the Plan
Administrator, either at the time of the actual option surrender or at any earlier time. If the
surrender is so approved, then the distribution to which the Optionee shall accordingly become
entitled under this Section III may be made in shares of Common Stock valued at Fair Market Value
on the option surrender date, in cash, or partly in shares and partly in cash, as the Plan
Administrator shall in its sole discretion deem appropriate.

     3. If the surrender of an option is not approved by the Plan Administrator, then the
Optionee shall retain whatever rights the Optionee had under the surrendered option (or
surrendered portion thereof) on the option surrender date and may exercise such rights at any
time prior to the later of (i) five (5) business days after the receipt of the rejection notice
or (ii) the last day on which the option is

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otherwise exercisable in accordance with the terms of the instrument evidencing such option,
but in no event may such rights be exercised more than ten (10) years after the date of the
option grant.

     D. Standalone Rights. The following terms and conditions shall govern the grant and
exercise of Standalone Rights under this Article Two:

     1. One or more individuals eligible to participate in the Discretionary Grant Program may be
granted a Standalone Right not tied to any underlying option under this Discretionary Grant
Program. The Standalone Right shall relate to a specified number of shares of Common Stock and
shall be exercisable upon such terms and conditions as the Plan Administrator may establish. In
no event, however, may the Standalone Right have a maximum term in excess of ten (10) years
measured from the grant date. Upon exercise of the Standalone Right, the holder shall be entitled
to receive a distribution from the Corporation in an amount equal to the excess of (i) the
aggregate Fair Market Value (on the exercise date) of the shares of Common Stock underlying the
exercised right over (ii) the aggregate base price in effect for those shares.

     2. The number of shares of Common Stock underlying each Standalone Right and the base price
in effect for those shares shall be determined by the Plan Administrator in its sole discretion
at the time the Standalone Right is granted. In no event, however, may the base price per share
be less than the Fair Market Value per underlying share of Common Stock on the grant date.

     3. Standalone Rights shall be subject to the same transferability restrictions applicable to
Non-Statutory Options and may not be transferred during the holder’s lifetime, except by gift or
pursuant to a domestic relations order covering the Standalone Right as marital property to one
or more Family Members of the holder or to a trust established exclusively for the holder and/or
such Family Members. In addition, one or more beneficiaries may be designated for an outstanding
Standalone Right in accordance with substantially the same terms and provisions as set forth in
Section I.F of this Article Two.

     4. The distribution with respect to an exercised Standalone Right may be made in shares of
Common Stock valued at Fair Market Value on the exercise date, in cash, or partly in shares and
partly in cash, as the Plan Administrator shall in its sole discretion deem appropriate.

     5. The holder of a Standalone Right shall have no shareholder rights with respect to the
shares subject to the Standalone Right unless and until such person shall have exercised the
Standalone Right and become a holder of record of shares of Common Stock issued upon the exercise
of such Standalone Right.

     E. Post-Service Exercise. The provisions governing the exercise of Tandem and
Standalone Appreciation Rights following the cessation of the recipient’s Service or the
recipient’s death shall be substantially the same as those set forth in Section I.C of this Article
Two for the options granted under the Discretionary Grant Program.

     F. Net Counting. Upon the exercise of any Tandem or Standalone Right under this
Section III, the share reserve under Section V of Article One shall only be reduced by the net
number of shares actually issued by the Corporation upon such exercise, and not by the gross number
of shares as to which such Tandem or Standalone Right is exercised.

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     IV. CHANGE IN CONTROL/HOSTILE TAKE-OVER

     A. No Award outstanding under the Discretionary Grant Program at the time of a Change in
Control shall vest and become exercisable on an accelerated basis if and to the extent that: (i)
such Award is, in connection with the Change in Control, 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, (ii) such Award is replaced with a cash retention program of the successor
corporation that preserves the spread existing at the time of the Change in Control on the shares
of Common Stock as to which the Award is not otherwise at that time vested and exercisable and
provides for the subsequent vesting and payout of that spread in accordance with the same
exercise/vesting schedule applicable to those shares, or (iii) the acceleration of such Award is
subject to other limitations imposed by the Plan Administrator. However, if none of the foregoing
conditions are satisfied, each Award outstanding under the Discretionary Grant Program at the time
of the Change in Control but not otherwise vested and exercisable as to all the shares at the time
subject to that Award shall automatically accelerate so that each such Award shall, immediately
prior to the effective date of the Change in Control, vest and become exercisable as to all the
shares of Common Stock at the time subject to that Award and may be exercised as to any or all of
those shares as fully vested shares of Common Stock.

     B. All outstanding repurchase rights under the Discretionary Grant Program shall also
terminate automatically, and the shares of Common Stock subject to those terminated rights shall
immediately vest in full, in the event of any Change in Control, except to the extent: (i) those
repurchase rights are assigned to the successor corporation (or parent thereof) or otherwise
continue in full force and effect pursuant to the terms of the Change in Control transaction or
(ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator.

     C. Immediately following the consummation of the Change in Control, all outstanding Awards
under the Discretionary Grant Program shall terminate and cease to be outstanding, except to the
extent assumed by the successor corporation (or parent thereof) or otherwise expressly continued in
full force and effect pursuant to the terms of the Change in Control transaction.

     D. Each option that is assumed in connection with a Change in Control or otherwise continued
in effect shall be appropriately adjusted, immediately after such Change in Control, to apply to
the number and class of securities that would have been issuable to the Optionee in consummation of
such Change in Control had the option been exercised immediately prior to such Change in Control.
In the event outstanding Standalone Rights are to be assumed in connection with a Change in Control
transaction or otherwise continued in effect, the shares of Common Stock underlying each such
Standalone Right shall be adjusted immediately after such Change in Control to apply to the number
and class of securities into which those shares of Common Stock would have been converted in
consummation of such Change in Control had those shares actually been outstanding at that time.
Appropriate adjustments to reflect such Change in Control shall also be made to (i) the exercise
price payable per share under each outstanding option, provided the aggregate exercise price
payable for such securities shall remain the same, (ii) the base price per share in effect under
each outstanding Standalone Right, provided the aggregate base price shall remain the same, (iii)
the maximum number and/or class of securities available for issuance over the remaining term of the
Plan, (iv) the maximum number and/or class of securities for which any one person may be granted
Awards under the Plan per calendar year, (v) the maximum number and/or class of securities by which
the share reserve is to increase automatically each calendar year pursuant to the automatic share
increase provisions of the Plan, (vi) the number and/or class of securities for which restricted
stock unit awards are subsequently to be made under the Director Automatic Grant Program to new and
continuing Eligible Directors (vii) the number and/or class of securities subject to each
outstanding Award under the Stock Issuance Program and the cash consideration (if any) payable per
share thereunder, and (viii) the maximum number and class of securities that may be added to the
Plan

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through the repurchase of unvested shares issued under the Predecessor Plans. 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, the successor corporation may, in
connection with the assumption or continuation of the outstanding Awards under the Discretionary
Grant Program, substitute, for the securities underlying those assumed Awards, 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.

     E. The Plan Administrator shall have the discretionary authority to structure one or more
outstanding Awards under the Discretionary Grant Program so that those Awards shall, immediately
prior to the effective date of a Change in Control or a Hostile Take-Over, vest and become
exercisable as to all the shares at the time subject to those Awards and may be exercised as to any
or all of those shares as fully vested shares of Common Stock, whether or not those Awards are to
be assumed or otherwise continued in full force and effect pursuant to the express terms of such
transaction. In addition, the Plan Administrator shall have the discretionary authority to
structure one or more of the Corporation’s repurchase rights under the Discretionary Grant Program
so that those rights shall immediately terminate at the time of such Change in Control or
consummation of such Hostile Take-Over and shall not be assignable to successor corporation (or
parent thereof), and the shares subject to those terminated rights shall accordingly vest in full
at the time of such Change in Control or consummation of such Hostile Take-Over.

     F. The Plan Administrator shall have full power and authority to structure one or more
outstanding Awards under the Discretionary Grant Program so that those Awards shall immediately
vest and become exercisable as to all of the shares at the time subject to those Awards in the
event the Optionee’s Service is subsequently terminated by reason of an Involuntary Termination
within a designated period (not to exceed eighteen (18) months) following the effective date of any
Change in Control or a Hostile Take-Over in which those Awards do not otherwise vest on an
accelerated basis. Any Awards so accelerated shall remain exercisable as to fully vested shares
until the expiration or sooner termination of their term. In addition, the Plan Administrator may
structure one or more of the Corporation’s repurchase rights under the Discretionary Grant Program
so that those rights shall immediately terminate with respect to any shares held by the Optionee at
the time of his or her Involuntary Termination, and the shares subject to those terminated
repurchase rights shall accordingly vest in full at that time.

     G. The portion of any Incentive Option accelerated in connection with a Change in Control
shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred
Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar limitation is
exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option
under the Federal tax laws.

     H. Awards outstanding under the Discretionary Grant Program shall in no 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.

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ARTICLE THREE

STOCK ISSUANCE PROGRAM

     I. STOCK ISSUANCE TERMS

     A. Issuances. Shares of Common Stock may be issued under the Stock Issuance Program
through direct and immediate issuances without any intervening option grants. Each such stock
issuance shall be evidenced by a Stock Issuance Agreement that complies with the terms specified
below. Shares of Common Stock may also be issued under the Stock Issuance Program pursuant to share
right awards or restricted stock units, awarded by and at the discretion of the Plan Administrator,
that entitle the recipients to receive the shares underlying those awards or units upon the
attainment of designated performance goals and/or the satisfaction of specified Service
requirements or upon the expiration of a designated time period following the vesting of those
awards or units.

     B. Issue Price.

     1. The price per share at which shares of Common Stock may be issued under the Stock Issuance
Program shall be fixed by the Plan Administrator, but shall not be less than one hundred percent
(100%) of the Fair Market Value per share of Common Stock on the issuance date.

     2. Shares of Common Stock may be issued under the Stock Issuance Program for any of the
following items of consideration that the Plan Administrator may deem appropriate in each
individual instance:

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

     (ii) past services rendered to the Corporation (or any Parent or Subsidiary); or

     (iii) any other valid form of consideration permissible under the California Corporations
Code at the time such shares are issued.

     C. Vesting Provisions.

     1. Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of
the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more
installments over the Participant’s period of Service and/or upon attainment of specified
performance objectives. The elements of the vesting schedule applicable to any unvested shares of
Common Stock issued under the Stock Issuance Program shall be determined by the Plan Administrator
and incorporated into the Stock Issuance Agreement. Shares of Common Stock may also be issued under
the Stock Issuance Program pursuant to share right awards or restricted stock units that entitle
the recipients to receive the shares underlying those awards and/or units upon the attainment of
designated performance goals or the satisfaction of specified Service requirements or upon the
expiration of a designated time period following the vesting of those awards or units, including
(without limitation) a deferred distribution date following the termination of the Participant’s
Service.

     2. The Plan Administrator shall also have the discretionary authority, consistent with Code
Section 162(m), to structure one or more Awards under the Stock Issuance Program so that the shares
of Common Stock subject to those Awards shall vest (or vest and become issuable) upon the
achievement of certain pre-established corporate performance goals based on one or more of the
following criteria: (i) return on total shareholder equity; (ii) net income per share of Common
Stock; (iii) net income or operating income; (iv) earnings before interest, taxes, depreciation,
amortization and stock-based 

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compensation costs, or operating income before depreciation and amortization; (v) sales or revenue targets;
(vi) return on assets, capital or investment; (vii) cash flow; (viii) market share; (ix) cost
reduction goals; (x) budget comparisons; (xi) implementation or completion of projects or processes
strategic or critical to the Corporation’s business operations; (xii) measures of customer
satisfaction; (xiii) any combination of, or a specified increase in, any of the foregoing; and
(xiv) the formation of joint ventures, research and development collaborations, marketing or
customer service collaborations, or the completion of other corporate transactions intended to
enhance the Corporation’s revenue or profitability or expand its customer base; provided, however,
that for purposes of items (ii), (iii), (iv) and (vii) above, the Plan Administrator may, at the
time the Awards are made, specify certain adjustments to such items as reported in accordance with
generally accepted accounting principles in the U.S. (“GAAP”), which will exclude from the
calculation of those performance goals one or more of the following: certain charges related to
acquisitions, stock-based compensation, employer payroll tax expense on certain stock option
exercises, settlement costs, restructuring costs, gains or losses on strategic investments,
non-operating gains or losses, certain other non-cash charges, valuation allowance on deferred tax
assets, and the related income tax effects, purchases of property and equipment, and any
extraordinary non- recurring items as described in Accounting Principles Board Opinion No. 30,
provided that such adjustments are in conformity with those reported by the Corporation on a
non-GAAP basis. In addition, such performance goals may be based upon the attainment of specified
levels of the Corporation’s performance under one or more of the measures described above relative
to the performance of other entities and may also be based on the performance of any of the
Corporation’s business groups or divisions thereof or any Parent or Subsidiary. Performance goals
may include a minimum threshold level of performance below which no award will be earned, levels of
performance at which specified portions of an award will be earned, and a maximum level of
performance at which an award will be fully earned. The Plan Administrator may provide that, if the
actual level of attainment for any performance objective is between two specified levels, the
amount of the award attributable to that performance objective shall be interpolated on a
straight-line basis.

     3. Any new, substituted or additional securities or other property (including money paid other
than as a regular cash dividend) that the Participant may have the right to receive with respect to
the Participant’s unvested shares of Common Stock by reason of any stock dividend, stock split,
recapitalization, combination of shares, exchange of shares, spin-off transaction or other change
affecting the outstanding Common Stock as a class without the Corporation’s receipt of
consideration or a substantial reduction in the value of outstanding shares of Common Stock as a
result of a spin-off transaction or an extraordinary dividend or distribution, shall be issued
subject to (i) the same vesting requirements applicable to the Participant’s unvested shares of
Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

     4. The Participant shall have full shareholder rights with respect to any shares of Common
Stock issued to the Participant under the Stock Issuance Program, whether or not the Participant’s
interest in those shares is vested. Accordingly, the Participant shall have the right to vote such
shares and to receive any regular cash dividends paid on such shares. The Participant shall not
have any shareholder rights with respect to the shares of Common Stock subject to a restricted
stock unit or share right award until that award vests and the shares of Common Stock are actually
issued thereunder. However, dividend-equivalent units may be paid or credited, either in cash or in
actual or phantom shares of Common Stock, on outstanding restricted stock unit or share right
awards, subject to such terms and conditions as the Plan Administrator may deem appropriate.

     5. Should the Participant cease to remain in Service while holding one or more unvested shares
of Common Stock issued under the Stock Issuance Program or should the performance objectives not be
attained with respect to one or more such unvested shares of Common Stock, then those shares shall
be immediately surrendered to the Corporation for cancellation, and the Participant shall have no
further

13

 

shareholder rights with respect to those shares. To the extent the surrendered shares were
previously issued to the Participant for consideration paid in cash, cash equivalent or otherwise,
the Corporation shall repay to the Participant the same amount and form of consideration as the
Participant paid for the surrendered shares.

     6. The Plan Administrator may in its discretion waive the surrender and cancellation of one or
more unvested shares of Common Stock that would otherwise occur upon the cessation of the
Participant’s Service or the non-attainment of the performance objectives applicable to those
shares. Any such waiver shall result in the immediate vesting of the Participant’s interest in the
shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time,
whether before or after the Participant’s cessation of Service or the attainment or non-attainment
of the applicable performance objectives. However, no vesting requirements tied to the attainment
of performance objectives may be waived with respect to shares that were intended at the time of
issuance to qualify as performance-based compensation under Code Section 162(m), except in the
event of the Participant’s Involuntary Termination or as otherwise provided in Section II.E of this
Article Three.

     7. Outstanding share right awards or restricted stock units under the Stock Issuance Program
shall automatically terminate, and no shares of Common Stock shall actually be issued in
satisfaction of those awards or units, if the performance goals or Service requirements established
for such awards or units are not attained or satisfied. The Plan Administrator, however, shall have
the discretionary authority to issue vested shares of Common Stock under one or more outstanding
share right awards or restricted stock units as to which the designated performance goals or
Service requirements have not been attained or satisfied. However, no vesting requirements tied to
the attainment of performance goals may be waived with respect to awards or units which were at the
time of grant intended to qualify as performance-based compensation under Code Section 162(m),
except in the event of the Participant’s Involuntary Termination or as otherwise provided in
Section II.E of this Article Three.

     II. CHANGE IN CONTROL/HOSTILE TAKE-OVER

     A. All of the Corporation’s outstanding repurchase rights under the Stock Issuance Program
shall terminate automatically, and all the shares of Common Stock subject to those terminated
rights shall immediately vest in full, in the event of any Change in Control, except to the extent
(i) those repurchase rights are to be assigned to the successor corporation (or parent thereof) or
otherwise continued in full force and effect pursuant to the express terms of the Change in Control
transaction or (ii) such accelerated vesting is precluded by other limitations imposed in the Stock
Issuance Agreement.

     B. Each outstanding Award under the Stock Issuance Program that is assumed in connection with
a Change in Control or otherwise continued in effect shall be adjusted immediately after the
consummation of that Change in Control to apply to the number and class of securities into which
the shares of Common Stock subject to the Award immediately prior to the Change in Control would
have been converted in consummation of such Change in Control had those shares actually been
outstanding at that time, and appropriate adjustments shall also be made to the cash consideration
(if any) payable per share thereunder, provided the aggregate amount of such consideration shall
remain the same. If any such Award is not so assumed or otherwise continued in effect or replaced
with a cash retention program that preserves the Fair Market Value of the shares underlying the
Award at the time of the Change in Control and provides for the subsequent vesting and payout of
that value in accordance with the vesting schedule in effect for the Award at the time of such
Change in Control, such Award shall vest, and the shares of Common Stock subject to that Award
shall be issued as fully-vested shares, immediately prior to the consummation of the Change in
Control.

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     C. The Plan Administrator shall have the discretionary authority to structure one or more
unvested Awards under the Stock Issuance Program so that the shares of Common Stock subject to
those Awards shall automatically vest (or vest and become issuable) in whole or in part immediately
upon the occurrence of a Change in Control or upon the subsequent termination of the Participant’s
Service by reason of an Involuntary Termination within a designated period (not to exceed eighteen
(18) months) following the effective date of that Change in Control transaction.

     D. The Plan Administrator shall also have the discretionary authority to structure one or
more unvested Awards under the Stock Issuance Program so that the shares of Common Stock subject to
those Awards shall automatically vest (or vest and become issuable) in whole or in part immediately
upon the occurrence of a Hostile Take-Over or upon the subsequent termination of the Participant’s
Service by reason of an Involuntary Termination within a designated period (not to exceed eighteen
(18) months) following the effective date of that Hostile Take-Over.

     E. The Plan Administrator’s authority under Paragraphs C and D of this Section II shall also
extend to any Award intended to qualify as performance-based compensation under Code Section
162(m), even though the automatic vesting of those Awards pursuant to Paragraph C or D of this
Section II may result in their loss of performance-based status under Code Section 162(m).

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ARTICLE FOUR

DIRECTOR AUTOMATIC GRANT PROGRAM

     The provisions of the Director Automatic Grant Program set forth in this Article Four were
amended and modified by the Board on February 7, 2008, subject to shareholder approval at the 2008
Annual Meeting. Accordingly, if such shareholder approval is obtained, then the following terms
and provisions shall govern the Awards made under this Director Automatic Grant Program, effective
with the Awards made to the continuing non-employee Board members at the 2008 Annual Meeting. Any
Awards made under this Director Automatic Grant Program prior to the February 7, 2008 amendment
shall remain in full force and effect in accordance with the terms of the documents evidencing such
Awards. Should such shareholder approval not be obtained, then the provisions of this Article Four
as in effect immediately prior to the February 7, 2008 amendment shall continue in full force and
effect.

     I. TERMS

          A. Grant Dates. Grants under this amended Article Four shall be made on the dates
specified below:

          1. On the date of each annual meeting of shareholders, beginning with the 2008 Annual Meeting
of Shareholders, each individual who is to continue to serve as an Eligible Director, whether or
not that individual is standing for re-election to the Board at that particular annual meeting of
shareholders, shall automatically be granted restricted stock units covering that number of shares
of Common Stock (rounded up to the next whole share) determined by dividing the dollar sum of Three
Hundred Thousand Dollars ($300,000) by the Fair Market Value per share of Common Stock on such
date. There shall be no limit on the number of such annual restricted stock unit awards any one
Eligible Director may receive over his or her period of Board service.

          2. Each individual who commences service as an Eligible Director by reason of his or her
election to the Board at an annual meeting of shareholders shall automatically be granted
restricted stock units covering that number of shares of Common Stock (rounded up to the next whole
share) determined by dividing the dollar sum of Three Hundred Thousand Dollars ($300,000) by the
Fair Market Value per share of Common Stock on the date of such annual meeting.

          3. Each individual who is first elected or appointed as an Eligible Director at any time
after the date of the 2008 Annual Meeting of Shareholders and other than as a result of his or her
initial election to the Board at an annual meeting of shareholders, shall, on the date he or she
commences Service as an Eligible Director, automatically be granted the following Award, provided
such individual has not previously been in the employ of the Corporation (or any Parent or
Subsidiary):

          - a restricted stock unit award covering that number of shares of Common Stock determined
(i) first by multiplying the dollar sum of Three Hundred Thousand Dollars ($300,000) by a
fraction the numerator of which is the number of months (including any partial month, expressed
as a fraction) that will elapse between the date he or she commences Service as an Eligible
Director and the first May 5th next succeeding such Service commencement date and the denominator
of which is 12 months and (ii) then, by dividing the pro-rated dollar amount so calculated by the
Fair Market Value per share on such commencement date.

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          B. Vesting of Restricted Stock Units and Issuance of Shares. Each restricted stock
unit award shall vest in a series of one or more successive equal quarterly installments over the
period measured from the date of such award and ending no later than the next succeeding
5th day of May. The quarterly vesting dates shall be the 5th day of February, May,
August and November each year, with the first such quarterly vesting date to be at least thirty
(30) days after the date of the award and the final vesting date to be the earlier of (i) the last
quarterly vesting date determined for such award in accordance with the foregoing specified dates
or (ii) the day immediately preceding the date of the first annual meeting of shareholders
following the date of such award. The Board member shall not vest in any additional restricted
stock units following his or her cessation of service as a Board member; provided, however, that
each restricted stock unit award held by an Eligible Director under the Director Automatic Grant
Program will immediately vest in full upon his or her cessation of Board service by reason of death
or Permanent Disability. As the restricted stock units under the Director Automatic Grant Program
vest in one or more installments, the shares of Common Stock underlying those vested units shall be
promptly issued; provided, however, that the Compensation Committee may allow one or more Eligible
Directors to defer, in accordance with the applicable deferral election requirements in effect
under Code Section 409A and the Treasury Regulations issued thereunder, the issuance of the shares
beyond the applicable vesting date to a designated date or until cessation of Board service or an
earlier change in control event (as determined in accordance with such Treasury Regulations).

     II. CHANGE IN CONTROL/HOSTILE TAKE-OVER

          A. In the event of any Change in Control or Hostile Take-Over while the Eligible Director
remains a Board member, the following provisions shall apply:

          - The shares of Common Stock that are at the time of such Change in Control or Hostile
Take-Over subject to any outstanding restricted stock units awards made to such Director under the
Director Automatic Grant Program shall, immediately prior to the effective date of the Change in
Control or Hostile Take-Over, vest in full and be issued to such individual as soon as
administratively practicable thereafter, but in no event later than fifteen (15) business days
after the effective date of such transaction; provided, however, that should there be a deferral
election in effect at that time for any Eligible Director, then the issuance of the vested shares
(or any other securities or consideration in which those vested shares of Common Stock may have
been converted in the Change in Control or Hostile Take-Over transaction) shall be issued or
distributed solely in accordance with the permissible Code Section 409A payment date or event
specified in that deferral election.

          B. The existence of outstanding Awards under the Director Automatic Grant Program shall in no
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.

     III. REMAINING TERMS

          The remaining terms of each restricted stock unit award under the Director Automatic Grant
Program shall be as set forth in the form restricted stock unit award agreement approved by the
Compensation Committee to evidence the Awards made under this Article Four.

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ARTICLE FIVE

MISCELLANEOUS

     I. TAX WITHHOLDING

     A. The Corporation’s obligation to deliver shares of Common Stock upon the issuance, exercise
or vesting of Awards under the Plan shall be subject to the satisfaction of all applicable federal,
state and local income and employment tax withholding requirements.

     B. In addition to the automatic withholding provision set forth in Section I.A.2.iv of
Article Two, the Plan Administrator may, in its discretion, provide any or all Optionees or
Participants to whom Awards are made under the Plan (other than the Awards made under the Director
Automatic Grant Program) with the right to utilize either or both of the following methods to
satisfy all or part of the Withholding Taxes to which those holders may become subject in
connection with the issuance, exercise or vesting of those Awards.

     Stock Withholding: The election to have the Corporation withhold, from the shares
of Common Stock otherwise issuable upon the issuance, exercise or vesting of those Awards a
portion of those shares with an aggregate Fair Market Value equal to the percentage of the
Withholding Taxes (not to exceed one hundred percent (100%)) designated by the Optionee or
Participant and make a cash payment equal to such Fair Market Value directly to the appropriate
taxing authorities on such individual’s behalf. The shares of Common Stock so withheld shall not
reduce the number of shares of Common Stock authorized for issuance under the Plan.

     Stock Delivery: The election to deliver to the Corporation, at the time the Award
is issued, exercised or vests, one or more shares of Common Stock previously acquired by such
Optionee or Participant (other than in connection with the issuance, exercise or vesting
triggering the Withholding Taxes) with an aggregate Fair Market Value equal to the percentage of
the Withholding Taxes (not to exceed one hundred percent (100%)) designated by such holder. The
shares of Common Stock so delivered shall not be added to the shares of Common Stock authorized
for issuance under the Plan.

     II. SHARE ESCROW/LEGENDS

     Unvested shares issued under the Plan may, in the Plan Administrator’s discretion, be held in
escrow by the Corporation until the Participant’s interest in such shares vests or may be issued
directly to the Participant with restrictive legends on the certificates evidencing those unvested
shares.

     III. EFFECTIVE DATE AND TERM OF THE PLAN

     A. The Plan became effective immediately on the Original Effective Date. Awards may be
granted under the Discretionary Grant Program, the Stock Issuance Program and the Director
Automatic Grant Program at any time on or after the Original Effective Date.

     B. The Plan shall serve as the successor to the Predecessor Plans, and no further option
grants or direct stock issuances shall be made under the Predecessor Plans after April 16, 1998.
All options outstanding under the Predecessor Plans on April 16, 1998 were incorporated into the
Plan at that time and are treated as outstanding options under the Plan. However, each outstanding
option so incorporated shall continue to be governed solely by the terms of the documents
evidencing such option, and no provision of the Plan shall be deemed to affect or otherwise modify
the rights or obligations of the holders of such incorporated options with respect to their
acquisition of shares of Common Stock.

18

 

     C. One or more provisions of the Plan, including (without limitation) the option/vesting
acceleration provisions of Article Two relating to Changes in Control and Hostile Take-Overs, may,
in the Plan Administrator’s discretion, be extended to one or more options incorporated from the
Predecessor Plans that do not otherwise contain such provisions.

     D. The Plan was amended and restated by the Board on February 7, 2008 (the “February 2008
Restatement”), subject to shareholder approval at the 2008 Annual Meeting of Shareholders, to amend
the provisions of the Director Automatic Grant Program, and was further amended and restated on
March 12, 2008 to extend the term of the Plan and to revise the adjustments that may be made to
certain performance criteria that may serve as vesting conditions for performance-based awards
under the Stock Issuance Program (the “March 2008 Restatement” and together with the February 2008
Restatement, the “2008 Restatements”). The revisions to the Plan shall not become effective unless
the shareholders approve the 2008 Restatements at the 2008 Annual Meeting of Shareholders. Should
shareholder approval not be obtained at the 2008 Annual Meeting of Shareholders, the proposed
revisions to the Director Automatic Grant Program, the extension of the term of the Plan and the
revision to the performance criteria under the Stock Issuance Program will not be implemented. The
Plan will, however, continue in effect, and Awards will continue to be made under the Plan until
all the shares available for issuance under the Plan have been issued pursuant to Awards made under
the Plan.

     E. The Plan shall terminate upon the earliest to occur of (i) March 12, 2018, (ii)
the date on which all shares available for issuance under the Plan shall have been issued as
fully-vested shares or (iii) the termination of all outstanding Awards in connection with a Change
in Control. Should the Plan terminate March 12, 2018, all Awards outstanding at that time shall
continue to have force and effect in accordance with the provisions of the documents evidencing
such Awards.

     IV. AMENDMENT OF THE PLAN

     A. The Board shall have complete and exclusive power and authority to amend or modify the
Plan in any or all respects. However, no such amendment or modification shall adversely affect the
rights and obligations with respect to Awards at the time outstanding under the Plan unless the
Optionee or the Participant consents to such amendment or modification. In addition, shareholder
approval will be required for any amendment to the Plan that (i) materially increases the number of
shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of
individuals eligible to receive option grants or other awards under the Plan, (iii) materially
increases the benefits accruing to the Optionees and Participants under the Plan or materially
reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (iv)
materially extends the term of the Plan or (v) expands the types of awards available for issuance
under the Plan.

     B. Awards may be made under the Plan that involve shares of Common Stock in excess of the
number of shares then available for issuance under the Plan, provided no shares shall actually be
issued pursuant to those Awards until the number of shares of Common Stock available for issuance
under the Plan is sufficiently increased either by (1) the automatic annual share increase
provisions of Section V.B. of Article One or (2) shareholder approval of an amendment of the Plan
sufficiently increasing the share reserve. If shareholder approval is required and is not obtained
within twelve (12) months after the date of the first such excess Award, then all Awards made on
the basis of such excess shares shall terminate and cease to be outstanding.

19

 

     V. USE OF PROCEEDS

     Any cash proceeds received by the Corporation from the sale of shares of Common Stock under
the Plan shall be used for general corporate purposes.

     VI. REGULATORY APPROVALS

     A. The implementation of the Plan, the grant of any Award and the issuance of shares of
Common Stock in connection with the issuance, exercise or vesting of any Award made under the Plan
shall be subject to the Corporation’s procurement of all approvals and permits required by
regulatory authorities having jurisdiction over the Plan, the Awards made under the Plan and the
shares of Common Stock issuable pursuant to those Awards.

     B. No shares of Common Stock or other assets shall be issued or delivered under the Plan
unless and until there shall have been compliance with all applicable requirements of Federal and
state securities laws, including the filing and effectiveness of the Form S-8 registration
statement for the shares of Common Stock issuable under the Plan, and all applicable listing
requirements of any stock exchange on which Common Stock is then listed for trading.

     VII. NO EMPLOYMENT/SERVICE RIGHTS

     Nothing in the Plan shall confer upon the Optionee or the Participant 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 such person) or of
the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate
such person’s Service at any time for any reason, with or without cause.

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APPENDIX

The following definitions shall be in effect under the Plan:

A. Award shall mean any of the following stock or stock-based awards authorized for
issuance or grant under the Plan: stock option, stock appreciation right, direct stock issuance,
restricted stock or restricted stock unit award or other stock-based award.

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 Securities Exchange Act of 1934, as amended (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 or pursuant to a private transaction or series of transactions
with one or more of 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 that shall by appropriate action adopt the Plan.

G. Director Automatic Grant Program shall mean the director automatic grant program in
effect under Article Four of the Plan for the Eligible Directors.

H. Discretionary Grant Program shall mean the discretionary grant program in effect under
Article Two of the Plan pursuant to which stock options and stock appreciation rights may be
granted to one or more eligible individuals.

I. Eligible Director shall mean a Board member who is not, at the time of such
determination, an employee of the Corporation (or any Parent or Subsidiary) and who is accordingly
eligible to participate in the Director Automatic Grant Program in accordance with the eligibility
provisions of Articles One and Four.

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J. 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.

K. Exercise Date shall mean the date on which the Corporation shall have received written
notice of the option exercise.

L. 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 Global Select Market (or
the Nasdaq Global Market), then the Fair Market Value shall be the closing selling price per
share of Common Stock at the close of regular trading hours (i.e. before after-hours trading
begins) on the Nasdaq Global Select Market (or the Nasdaq Global Market) on the date in
question, as such price is reported by the Nasdaq Global Select Market (or the Nasdaq Global
Market) either as reported on the Nasdaq website (www.nasdaq.com), or otherwise. 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 other Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock at the close of
regular trading hours (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.

M. Family Member means, with respect to a particular Optionee or Participant, any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece,
nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, bother-in-law or sister-in-law.

N. Hostile Take-Over shall mean either of the following events effecting a change in
control or ownership of the Corporation:

(i) 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 that the Board does not
recommend such shareholders to accept, or

(ii) a change in the composition of the Board over a period of thirty-six (36) consecutive
months or less such that a majority of the Board members ceases, by reason of one or more
contested elections for Board membership, to be composed of individuals who either (A) have
been Board members continuously since the beginning of such period or (B) have been elected or
nominated for election as Board members during such period by at least a majority of the Board
members described in clause (A) who were still in office at the time the Board approved such
election or nomination.

O. Incentive Option shall mean an option that satisfies the requirements of Code Section
422.

22

 

P. Involuntary Termination shall mean the termination of the Service of any individual
that occurs by reason of:

(i) such individual’s involuntary dismissal or discharge by the Corporation for reasons other
than Misconduct, or

(ii) such individual’s voluntary resignation following (A) a change in his or her position with
the Corporation that materially reduces his or her duties and responsibilities or the level of
management to which he or she reports, (B) a reduction in his or her level of compensation
(including base salary, fringe benefits and target bonus under any corporate-performance based
bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such
individual’s place of employment by more than fifty (50) miles, provided and only if such
change, reduction or relocation is effected by the Corporation without the individual’s
consent.

Q. Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by
the Optionee or Participant, 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 any Optionee, Participant or 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, to constitute grounds for termination for
Misconduct.

R. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

S. Non-Statutory Option shall mean an option not intended to satisfy the requirements of
Code Section 422.

T. Optionee shall mean any person to whom an option is granted under the Discretionary
Grant or Director Automatic Grant Program.

U. Original Effective Date shall mean February 3, 1998.

V. 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.

W. Participant shall mean any person who is issued shares of Common Stock or restricted
stock units or other stock-based awards under the Stock Issuance Program, and any person who is
issued restricted stock units under the Director Automatic Grant Program.

X. Permanent Disability or Permanently Disabled shall mean the inability of the Optionee
or the Participant to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which is both (i) expected to result in death or
determined to be total and permanent by two (2) physicians selected by the Corporation or its
insurers and acceptable to the Optionee or the Participant (or the Optionee’s or Participant’s
legal representative), and (ii) to the extent the Optionee is eligible to participate in the
Corporation’s long-term disability plan, entitles the Optionee or the Participant to the payment of
long-term disability benefits from the Corporation’s long-term disability plan. The process for
determining a Permanent Disability in accordance with the foregoing shall be

23

 

completed no later than the later of (i) the close of the calendar year in which the Optionee’s or
the Participant’s Service terminates by reason of the physical or mental impairment triggering the
determination process or (ii) the fifteenth day of the third calendar month following such
termination of Service. However, solely for purposes of the Director Automatic Grant
Program, Permanent Disability or Permanently Disabled shall mean the inability of the Eligible
Director to perform his or her usual duties as a Board member by reason of any medically
determinable physical or mental impairment expected to result in death or to be of continuous
duration of twelve (12) months or more.

Y. Plan shall mean the Corporation’s 1998 Stock Incentive Plan, as set forth in this
document.

Z. Plan Administrator shall mean the particular entity, whether the Primary Committee, the
Board or a Secondary Committee, which is authorized to administer the Discretionary Grant and Stock
Issuance Programs with respect to one or more classes of eligible persons, to the extent such
entity is carrying out its administrative functions under those programs with respect to the
persons then subject to its jurisdiction.

AA. Predecessor Plans shall collectively mean the Corporation’s 1994 Amended and Restated
Stock Option Plan and the Special Stock Option Plan, as in effect immediately prior to the Original
Effective Date hereunder.

BB. Primary Committee shall mean the committee of two (2) or more Eligible Directors
appointed by the Board to administer the Discretionary Grant and Stock Issuance Programs with
respect to Section 16 Insiders.

CC. Secondary Committee shall mean a committee of two or more Board members appointed by
the Board to administer the Discretionary Grant and Stock Issuance Programs with respect to one or
more classes of eligible persons other than Section 16 Insiders.

DD. Section 16 Insider shall mean an officer or director of the Corporation subject to the
short-swing profit liability provisions of Section 16 of the 1934 Act.

EE. Service shall mean the performance of services for the Corporation (or any Parent or
Subsidiary) by a person in the capacity of an Employee, an Eligible Director or a consultant or
independent advisor, except to the extent otherwise specifically provided in the documents
evidencing the Award made to such person. For purposes of the Plan, an Optionee or Participant
shall be deemed to cease Service immediately upon the occurrence of the either of the following
events: (i) the Optionee or Participant no longer performs services in any of the foregoing
capacities for the Corporation or any Parent or Subsidiary or (ii) the entity for which the
Optionee or Participant is performing such services ceases to remain a Parent or Subsidiary of the
Corporation, even though the Optionee or Participant may subsequently continue to perform services
for that entity.

FF. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global Select
Market, the Nasdaq Global Market or the New York Stock Exchange.

GG. Stock Issuance Agreement shall mean the agreement entered into by the Corporation and
the Participant at the time of issuance of shares of Common Stock under the Stock Issuance Program.

HH. Stock Issuance Program shall mean the stock issuance program in effect under Article
Three of the Plan.

24

 

II. 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.

JJ. 10% Shareholder shall mean the owner of stock (as determined under Code Section
424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of
stock of the Corporation (or any Parent or Subsidiary).

KK. Withholding Taxes shall mean the federal, state and local income and employment taxes
to which the Optionee or Participant may become subject in connection with the issuance, exercise
or vesting of the Award made to him or her under the Plan.

25exv10w18

Exhibit 10.18

STANDARD QUARTERLY VESTING

CEO ONLY

BROADCOM CORPORATION

RESTRICTED STOCK UNIT ISSUANCE AGREEMENT

RECITALS

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

          B. Participant 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 issuance of shares of Common Stock to the Participant under
the Stock Issuance Program.

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

     NOW, THEREFORE, it is hereby agreed as follows:

          1. Grant of Restricted Stock Units. The Corporation hereby awards to the Participant,
as of the Award Date, Restricted Stock Units under the Plan. Each Restricted Stock Unit represents
the right to receive one share of Common Stock on the vesting date specified for that unit in
accordance with the express provisions of this Agreement. The number of shares of Common Stock
subject to the awarded Restricted Stock Units, the applicable vesting schedule for those shares,
the date or dates on which those vested shares shall become issuable to Participant and the
remaining terms and conditions governing the award (the “Award”) shall be as set forth in this
Agreement.

AWARD SUMMARY

	 	 	 

	Participant:

	 	                                                            
	 
	 	 
	Award Date:

	 	                                        , 20          
	 
	 	 
	Vesting Commencement Date:

	 	                                        , 20           (the “Vesting Commencement Date”)
	 
	 	 
	Number of Shares
Subject to Award:

	 	                               shares of Common Stock (the “Shares”)
	 
	 	 
	Vesting Schedule:

	 	The Shares shall vest in a series of sixteen (16) successive
equal quarterly installments upon the Participant’s completion
of each successive three (3)-month period of Service (each
date on which such three (3)-month period ends, a “Vesting
Date”) over the forty-eight (48)-month period measured

 

 

	 	 	 

	 

	 	from
the Vesting Commencement Date (the “Normal Vesting Schedule”).
However, the Shares may also vest in whole or in part on an
accelerated basis in accordance with the provisions of
Sections 3 and 5 of this Agreement.
	 
	 	 
	Issuance Schedule:

	 	Subject to Section 8 of this Agreement, each quarterly
installment of Shares to which the Participant becomes
entitled in accordance with the Normal Vesting Schedule shall
be issued, subject to the Corporation’s collection of the
applicable Withholding Taxes, on the date that installment
vests in accordance with such schedule or as soon thereafter
as administratively practicable, but in no event later than
thirty (30) days after the applicable Vesting Date. Any Shares
that vest on an accelerated basis pursuant to Section 3 or 5
of this Agreement shall be issued in accordance with the
applicable provisions of such section. The Corporation shall
in all instances collect the applicable Withholding Taxes with
respect to the issued Shares pursuant to the procedures set
forth in Section 7 of this Agreement.

          2. Limited Transferability. Prior to actual receipt of the Shares that become
issuable hereunder, the Participant may not transfer any interest in the Award or the underlying
Shares or pledge or otherwise hedge the sale of those Shares, including (without limitation) any
short sale or any acquisition or disposition of any put or call option or other instrument tied to
the value of those Shares. Any attempt by the Participant to do so will result in an immediate
forfeiture of all of the Restricted Stock Units awarded to the Participant hereunder. Any Shares
that vest hereunder but which otherwise remain unissued at the time of the Participant’s death may
be transferred pursuant to the provisions of the Participant’s will or the laws of inheritance or
to the Participant’s designated beneficiary or beneficiaries of this Award. The Participant may
also direct the Corporation to immediately re-issue the stock certificates for any Shares that in
fact vest and become issuable to Participant under the Award during his or her lifetime to one or
more designated Family Members or a trust established for the Participant and/or his or her Family
Members. The Participant may make such a beneficiary designation or certificate directive at any
time by filing the appropriate form with the Plan Administrator or its designee.

          3. Cessation of Service.

               (a) Except as otherwise provided in this Section 3 or Section 5 below, should the Participant
cease Service for any reason prior to a Vesting Date, then the Award shall be immediately cancelled
with respect to those unvested Shares. Participant shall thereupon cease to have any right or
entitlement to receive any Shares under those cancelled units.

               (b) The Normal Vesting Schedule requires continued active Service by the Participant through
each Vesting Date as a condition to the vesting of that quarterly installment and the rights and
benefits provided under this Agreement with respect to that installment. Accordingly, if the
Participant’s Service terminates for any reason prior to an applicable quarterly Vesting Date, this
Award shall be immediately cancelled, and no further

2

 

Restricted Stock Units shall thereafter vest. Service for only a portion of a quarterly
vesting period, even if a substantial portion, will not entitle the Participant to any
proportionate vesting for that quarter or avoid or mitigate the cancellation and forfeiture of the
Restricted Stock Units that will occur upon the termination of his Service prior to vesting in all
the Restricted Stock Units subject to this Award. Upon the cancellation of one or more Restricted
Stock Units, the Participant shall cease to have any right or entitlement to receive any Shares
under those cancelled units.

               (c) The Participant also has an employment agreement with the Corporation in the form of an
amended and restated letter agreement and appendix (the “Employment Agreement”) pursuant to which
the Participant’s equity or equity-based awards from the Corporation, including this Award, may
vest in whole or in part on an accelerated basis in connection with the Participant’s cessation of
Employee status under various specified circumstances. The Employment Agreement also sets forth the
date or dates on which the shares of Common Stock subject to the awards that vest on such an
accelerated basis, including the Shares subject to this Award, are to be issued, subject to certain
required delays as set forth in the Employment Agreement. The terms and provisions of the
Employment Agreement, as they apply to this Award, are hereby incorporated by reference into this
Agreement and shall have the same force and effect as if expressly set forth in this Agreement.

               (d) In the event the Participant’s Employee status terminates prior to vesting in all the
Shares due to his death or Disability, then the applicable death and Disability provisions of the
Employment Agreement shall govern the Participant’s rights and entitlements.

          4. Shareholder Rights.

               (a) The Restricted Stock Units subject to this Award do not impose any fiduciary obligations
upon the Corporation and create only a contractual obligation on the part of the Corporation to
issue the Shares that vest in accordance with the express terms of this Agreement. The Restricted
Stock Units shall not be treated as property or as a trust fund of any kind.

               (b) Participant shall not have any shareholder rights, including voting, dividend or
liquidation rights, with respect to the Shares subject to the Award until Participant becomes the
record holder of those Shares upon their actual issuance following the Corporation’s collection of
the applicable Withholding Taxes.

               (c) Except as otherwise provided in Section 6, no adjustments will made to this Award for
dividends or other shareholder distributions for which the record date is prior to the date
Participant becomes the record holder of the Shares subject to this Award.

          5. Change of Control.

               (a) Any Restricted Stock Units subject to this Award at the time of a Change in Control may be
assumed by the successor entity or otherwise continued in full force and effect or may be replaced
with a cash retention program of the successor entity that preserves

3

 

the Fair Market Value (at the time of the Change in Control) of the unvested shares of Common
Stock subject to the Award and provides for the subsequent vesting and payout of that value in
accordance with the same vesting and issuance schedules applicable to the Award. In the event of
such assumption or continuation of this Award or such replacement of the Award with a cash
retention program, no accelerated vesting of the Restricted Stock Units or the underlying Shares
shall occur at the time of the Change in Control.

               (b) In the event this Award is assumed or otherwise continued in effect, the Restricted Stock
Units subject to the Award shall be adjusted immediately after the consummation of the Change in
Control so as to apply to the number and class of securities into which the Shares subject to those
units immediately prior to the Change in Control would have been converted in consummation of that
Change in Control had those Shares actually been issued and outstanding at that time. To the
extent the actual holders of the outstanding Common Stock receive cash consideration for their
Common Stock in consummation of the Change in Control, the successor corporation (or parent
entity) may, in connection with the assumption or continuation of the Restricted Stock Units
subject to the Award at that time, substitute one or more shares of its own common stock with a
fair market value equal to the cash consideration paid per share of Common Stock in the Change in
Control transaction, provided the substituted common stock is readily tradable on an established
U.S. securities exchange or market.

               (c) If the Participant’s Employee status continues until the Change in Control and the
Restricted Stock Units subject to this Award at the time of the Change in Control are not assumed
or otherwise continued in effect or replaced with a cash retention program in accordance with
Section 5(a), then those units will vest immediately prior to the closing of the Change in Control.
The Shares subject to those vested units shall be converted into the right to receive the same
consideration per share of Common Stock payable to the other shareholders of the Corporation in
consummation of that Change in Control, and such consideration per Share shall be distributed to
Participant upon such Change in Control or at such later time or times as the consideration is paid
to the other holders of Common Stock in connection with the Change in Control, but only to the
extent that any such delayed payments will not require the Participant to include amounts payable
in respect of the Restricted Stock Units in income under Code Section 409A.

               (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.

          6. Adjustment in 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,
spin-off transaction or other change affecting the outstanding Common Stock as a class without the
Corporation’s receipt of consideration, or should the value of outstanding shares of Common Stock
be substantially reduced as a result of a spin-off transaction or an extraordinary dividend or
distribution, or should there occur any merger, consolidation or other reorganization, then
equitable adjustments shall be made by the Plan Administrator to the total number and/or class of
securities issuable pursuant to this Award. The adjustments shall be

4

 

made by the Plan Administrator in such manner as the Plan Administrator deems appropriate to
reflect such change, and those adjustments shall be final, binding and conclusive. In the event of
a Change in Control, the provisions of Section 5 shall be controlling.

          7. Issuance of Shares of Common Stock.

               (a) Except as otherwise provided in Section 5(c), on any applicable date that Shares are to be
issued pursuant to this Agreement, the Corporation shall issue to or on behalf of Participant a
certificate (which may be in electronic form) for the vested shares of Common Stock to be issued on
that date.

               (b) The applicable Withholding Taxes with respect to the issued Shares or any other
consideration distributed to Participant shall be collected from Participant as and when such taxes
become due. Participant may, with respect to the issued Shares, satisfy the applicable Withholding
Taxes through one or more of the following methods:

          (i) The delivery of a separate check payable to the Corporation;

          (ii) if and to the extent expressly authorized by the Plan Administrator at the
time, through a share withholding procedure, pursuant to which the Corporation will
automatically withhold, immediately upon the issuance of the Shares, a portion of
those Shares with a Fair Market Value (measured as of the issuance date) equal to
the amount of such Withholding Taxes (the “Share Withholding Method”); provided,
however, that the amount of any Shares so withheld shall not exceed the amount
necessary to satisfy the Corporation’s required tax withholding obligations using
the minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, that are applicable to supplemental taxable income.
Participant will be notified (either in writing or through electronic transmission)
of the time or times when the Share Withholding Method will actually be available
with respect to one or more vested Shares that become issuable under this Agreement
(such notification will also set forth the procedures authorized and established by
the Plan Administrator for such purpose);

          (iii) irrevocable instructions given by Participant to a broker to remit to the
Corporation cash, in an amount equal to such Withholding Taxes, from a previously
established account Participant maintains with such broker; or

          (iv) to the extent the Share Withholding Method is not otherwise available at
the time one or more vested Shares become issuable, Participant may also satisfy
the applicable Withholding Taxes with respect to those Shares through the use of
proceeds from a next day sale of the issued Shares, provided and only if (i) such a
sale is permissible under the Corporation’s insider trading policies governing sales
of Corporation shares and (ii) such

5

 

transaction is not otherwise deemed to constitute a prohibited loan under
Section 402 of the Sarbanes-Oxley Act of 2002.

               (c) If any withholding event is other than the issuance of the Shares, or if the Corporation
for any reason is unable to collect the applicable Withholding Taxes with respect to the issuance
of the Shares through any of the foregoing collection procedures specified in this Section 7, then
the Corporation shall be entitled to require Participant to make a cash payment and/or to deduct
from other compensation payable to him or her the amount of such applicable Withholding Taxes.

               (d) Notwithstanding the foregoing provisions of this Section 7, the employee portion of the
federal, state and local employment taxes required to be withheld by the Corporation in connection
with the vesting of the Shares or any other amounts hereunder (the “Employment Taxes”) shall in all
events be collected from the Participant no later than the last business day of the calendar year
in which the Shares or other amounts vest hereunder. Accordingly, to the extent the issuance date
for one or more vested Shares or the distribution date for such other amounts is to occur in a year
subsequent to the calendar year in which those Shares or other amounts vest hereunder, the
Participant shall, on or before the last business day of the calendar year in which the Shares or
other amounts vest, deliver to the Corporation a check payable to its order in the dollar amount
equal to the Employment Taxes required to be withheld with respect to those Shares or other
amounts. The provisions of this Section 7(d) shall be applicable only to the extent necessary to
comply with the applicable tax withholding requirements of Code Section 3121(v).

               (e) Except as otherwise provided in Section 5 or Section 7(b), the settlement of all
Restricted Stock Units that vest under the Award shall be made solely in shares of Common Stock.
In no event, however, shall any fractional shares be issued. Accordingly, the total number of
shares of Common Stock to be issued at the time the Award vests shall, to the extent necessary, be
rounded down to the next whole share to avoid the issuance of a fractional share.

          8. Code Section 409A Limitations. Notwithstanding any provision in this Agreement to
the contrary, should this Agreement be deemed a deferred compensation arrangement subject to
Section 409A of the Code:

          - In no event shall the Shares that become issuable under this Agreement in
connection with the Participant’s cessation of Employee status be actually issued,
nor shall Participant have any right to the issuance of those Shares, prior to the
date on which the Participant incurs a Separation from Service due to that cessation
of Employee status.

          - If the issuance date for the Shares (or the distribution date of any other
amounts due the Participant hereunder) is tied to the Participant’s Separation from
Service in accordance with the applicable provisions of this Agreement or the
Employment Agreement, then in no event will the Shares be issued (or such amounts be
distributed) prior to the earlier of (i) the first day of

6

 

the seventh (7th) month following the date of such Separation from Service or
(ii) the date of Participant’s death, if Participant is deemed at the time of such
Separation from Service to be a specified employee under Section 1.409A-1(i) of the
Treasury Regulations issued under Code Section 409A, as determined by the Plan
Administrator in accordance with consistent and uniform standards applied to all
other Code Section 409A arrangements of the Corporation, and such delayed
commencement is otherwise required to avoid a prohibited distribution under Code
Section 409A(a)(2). Upon the expiration of the applicable deferral period, the
Shares shall be issued (or any other amounts due the Participant hereunder shall be
distributed) in a lump sum on the first day of the seventh (7th) month after the
date of Participant’s Separation from Service, or if earlier, the first day of the
month immediately following the date the Corporation receives proof of Participant’s
death.

          In addition, it is the intent of the Corporation and the Participant that the
provisions of this Agreement comply with all applicable requirements of Section 409A of the
Code. Accordingly, to the extent there is any ambiguity as to whether one or more
provisions of this Agreement would otherwise contravene the applicable requirements or
limitations of Code Section 409A, then those provisions shall be interpreted and applied in
a manner that does not result in a violation of the applicable requirements or limitations
of Code Section 409A and the applicable Treasury Regulations thereunder.

          9. Deferred Release Date. Should the applicable Restricted Stock Unit settlement date
occur during any period Participant is under investigation by the Corporation for any act or
transaction that might constitute grounds for termination for Misconduct, then those issued Shares
and/or the net proceeds from any sale or sales of those Shares during such period (the gross sale
proceeds less withholding taxes due the Corporation and broker commissions) will be held by the
Corporation in escrow until such time as the investigation is satisfactorily completed. If it is
determined that Participant has not engaged in any action or transaction that might constitute
grounds for a termination for Misconduct. then the escrowed Shares and/or funds will be released to
Participant, subject to the Corporation’s collection of all applicable Withholding Taxes not
otherwise previously collected, as soon as administratively practicable following the completion of
the investigation, but in no event later than the close of the calendar year in which such
determination is made. If it is determined that the Participant has engaged in any act or
transaction that constitutes grounds for termination for Misconduct, then Participant shall cease
to have any further right, title or interest in the escrowed Shares and/or funds, and those Shares
and funds shall be returned to the Corporation.

          10. Securities Law Compliance. The Corporation shall use its reasonable commercial
efforts to assure that all Shares issued pursuant to this Agreement are registered under the
federal securities laws. However, no Shares will be issued pursuant to this Award if such issuance
would otherwise constitute a violation of any applicable federal or state securities laws or
regulations or the requirements of any Stock Exchange on which the Common Stock may then be listed.
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 of any Shares

7

 

hereunder shall defer the Corporation’s obligation with respect to the issuance of such Shares
until such approval shall have been obtained.

          11. Transfer Restriction. None of the issued Shares may be sold or transferred in
contravention of (i) any market blackout periods the Corporation may impose from time to time or
(ii) the Corporation’s insider trading policies to the extent applicable to you from time to time.

          12. Parachute Payment. In the event the accelerated vesting and issuance of the
Shares subject to this Award would otherwise constitute a parachute payment under Code Section
280G, then the applicable parachute payment provisions of the Employment Agreement shall govern the
Participant’s rights and entitlements.

          13. Notice. Any notice to be given or delivered to the Corporation relating to this
Agreement shall be in writing and addressed to the Corporation at its principal corporate offices.
Any notice to be given or delivered to Participant relating to this Agreement shall be in writing
and addressed to Participant at the address indicated below his or her signature line on the last
page of this Agreement or such other address of which Participant may later advise the Corporation
in writing. 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.

          14. Successors and Assigns. The provisions of this Agreement shall inure to the
benefit of, and be binding upon, the Corporation and its successors and assigns and upon
Participant and the legal representatives, heirs and the legatees of his or her estate.

          15. Construction. This Agreement and the Award 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 the Award.

          16. 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.

          17. At Will Employment. Nothing in this Agreement or the Award shall provide
Participant with any right to continue in Service for any period of specific duration or interfere
with or otherwise restrict in any way Participant’s right or the right of the Corporation to
terminate Participant’s Service at any time for any reason, with or without cause, or for no
reason.

          18. Mandatory Arbitration. ANY AND ALL DISPUTES OR CONTROVERSIES BETWEEN PARTICIPANT
AND THE CORPORATION ARISING OUT OF, RELATING TO OR OTHERWISE CONNECTED WITH THIS AGREEMENT OR THE
AWARD OF RESTRICTED STOCK UNITS EVIDENCED HEREBY OR THE VALIDITY, CONSTRUCTION, PERFORMANCE OR
TERMINATION OF THIS

8

 

AGREEMENT SHALL BE SETTLED EXCLUSIVELY BY BINDING ARBITRATION TO BE HELD IN THE COUNTY IN
WHICH PARTICIPANT IS (OR HAS MOST RECENTLY BEEN) EMPLOYED BY THE CORPORATION (OR ANY PARENT OR
SUBSIDIARY) AT THE TIME OF SUCH ARBITRATION. 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 ACT. 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, EXPENSES AND ATTORNEY’S FEES. HOWEVER, THE
ARBITRATOR’S COMPENSATION AND OTHER FEES AND COSTS UNIQUE TO ARBITRATION SHALL IN ALL EVENTS BE
PAID BY THE CORPORATION. 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.

          19. Electronic Delivery. The Corporation may, in its sole discretion, decide to
deliver any document related to the Award, the Plan or future awards that may be granted under the
Plan by electronic means, and Participant hereby consents to receive such documents by electronic
delivery.

          20. Remaining Terms. The remaining terms and conditions of this Award are governed by
the Plan, and this Award is also subject to all interpretations, amendments, rules and regulations
that may from time to time be adopted under the Plan. The official prospectus summarizing the
principal features of the Plan and the restricted stock units issuable under the Plan is available
for review on the Corporation’s website at http://finbu.broadcom.com/stock/default.aspx. In the
event of any conflict between the provisions of this Agreement and those of the Plan, the
provisions of the Plan shall be

9

 

controlling. In the event of any conflict between the provisions of this Agreement and those
of the Employment Agreement, the provisions of the Employment Agreement shall be controlling.
Provisions of the Plan that confer discretionary authority on the Board or the Plan Administrator
do not (and shall not be deemed to) confer in Participant any rights, except to the extent such
rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the
Plan Administrator expressly conferred by appropriate action after the date hereof.

          IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first
indicated above.

	 	 	 	 	 	 	 

	 	 	BROADCOM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

10

 

APPENDIX A

DEFINITIONS

          The following definitions shall be in effect under the Agreement:

          A. Agreement shall mean this Restricted Stock Unit Issuance Agreement.

          B. Award shall mean the award of Restricted Stock Units made to the
Participant pursuant to the terms of this Agreement.

          C. Award Date shall mean the date the Restricted Stock Units are awarded to
Participant pursuant to the Agreement and shall be the date indicated in Section 1 of the
Agreement.

          D. Board shall mean the Corporation’s Board of Directors.

          E. 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, consolidation or other reorganization, unless
securities representing more than fifty percent (50%) of the total combined voting
power of the outstanding securities of the successor corporation are immediately
after such transaction, beneficially owned, directly or indirectly and in
substantially the same proportion, by the persons who beneficially owned Broadcom’s
outstanding voting securities immediately prior to such transaction,

          (ii) a shareholder-approved sale, transfer or other disposition of all or
substantially all of Broadcom’s assets,

          (iii) the closing of any transaction or series of related transactions pursuant
to which any person or any group of persons comprising a “group” within the meaning
of Rule 13d-5(b)(1) of the 1934 Act, other than Broadcom or a person that, prior to
such transaction or series of related transactions, directly or indirectly controls,
is controlled by or is under common control with, Broadcom, becomes directly or
indirectly (whether as a result of a single acquisition or by reason of one or more
acquisitions within the twelve (12)-month period ending with the most recent
acquisition) the beneficial owner (within the meaning of Rule 13d-3 of the 1934 Act)
of securities possessing (or convertible into or exercisable for securities
possessing) more than fifty percent (50%) of the total combined voting power of
Broadcom’s securities (as measured in terms of the power to vote with respect to the
election of Board members) outstanding immediately after the consummation of such
transaction or series of related

A-1

 

transactions, whether the transaction or transactions involve a direct issuance
from Broadcom or the acquisition of outstanding securities held by one or more of
Broadcom’s existing shareholders, or

          (iv) a change in the composition of the Board over a period of twenty-four (24)
consecutive months or less such that a majority of the Board members ceases, by
reason of one or more contested elections for Board membership, to be comprised of
individuals who either (A) have been Board members continuously since the beginning
of such period or (B) have been elected or nominated for election as Board members
during such period by at least a majority of the Board members described in clause
(A) who were still in office at the time the Board approved such election or
nomination; provided, however, that solely for purposes of determining whether a
permissible Section 409A distribution can be made under Section 5(d) in connection
with such Change in Control event, the period for measuring a change in the
composition of the Board shall be limited to a period of twelve (12) consecutive
months or less;

          Provided, however, that if this Agreement is deemed to constitute a deferred
compensation arrangement for purposes of Code Section 409A, then for purposes of any
circumstances in which a Change in Control constitutes a payment date or settlement
date with respect to the Restricted Stock Units subject hereto, including without
limitation, pursuant to Section 5(c) above, the foregoing shall only constitute a
Change in Control to the extent that such transaction(s) also constitute a “change in
control event” within the meaning of Code Section 409A.

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

          G. Common Stock shall mean shares of the Corporation’s Class A common stock.

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

          I. 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.

          J. 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 Global Select
Market (or the Nasdaq Global Market), then the Fair Market Value shall be the
closing selling price per share of Common Stock at the close of regular trading
hours (i.e. before after-hours trading begins) on the Nasdaq Global

A-2

 

Select Market (or the Nasdaq Global Market) on the date in question, as such
price is reported by the Nasdaq Global Select Market (or the Nasdaq Global Market)
either as reported on the Nasdaq website (www.nasdaq.com), or otherwise. 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 other Stock Exchange, the
then 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, the then Fair Market Value shall
be the closing selling price on the last preceding date for which such quotation
exists.

          L. Family Members shall mean, with respect to the Participant, any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister-in-law.

          M. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by the Participant, any unauthorized use or disclosure by the Participant of
confidential information or trade secrets of the Corporation (or any Parent or Subsidiary),
or any other intentional misconduct by the Participant 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 Participant 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.

          N. 1934 Act shall mean the Securities Exchange Act of 1934, as amended from
time to time.

          O. Participant shall mean the person to whom the Award is made pursuant to
the Agreement.

          P. 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.

A-3

 

          Q. Plan shall mean the Corporation’s 1998 Stock Incentive Plan, as amended and
restated from time to time.

          R. Plan Administrator shall mean either the Board or a committee of the Board
acting in its capacity as administrator of the Plan.

          S. Separation from Service shall mean a “separation from service” from the
Corporation (within the meaning of Section 409A of the Code).

          T. Service shall mean the Participant’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. For purposes of
this Agreement, Participant shall be deemed to cease Service immediately upon the
occurrence of either of the following events: (i) Participant no longer performs services
in any of the foregoing capacities for the Corporation (or any Parent or Subsidiary) or
(ii) the entity for which Participant performs such services ceases to remain a Parent or
Subsidiary of the Corporation, even though Participant may subsequently continue to perform
services for that entity; provided, however, that except to the extent otherwise required
by law or expressly authorized by the Plan Administrator or by the Corporation’s written
policy on leaves of absence, no Service credit shall be given for vesting purposes for any
period during which the Participant is on a leave of absence.

          U. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or
Global Select Market or the New York Stock Exchange.

          V. 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.

          W. Withholding Taxes shall mean the federal, state and local income taxes and
the employee portion of the federal, state and local employment taxes required to be
withheld by the Corporation in connection with the issuance of the shares of Common Stock
to which the Participant becomes entitled under this Agreement or any other consideration
that becomes payable to Participant with respect to those shares.

A-4

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