Document:

exv10w21

 

Exhibti-10.21

Executives
— New and Co-Invest Options — U.S.

NON-QUALIFIED SHARE OPTION AGREEMENT

UNDER THE AMENDED AND RESTATED EQUITY INCENTIVE PLAN

FOR EXECUTIVE EMPLOYEES OF

AVAGO TECHNOLOGIES LIMITED AND SUBSIDIARIES

          This Non-Qualified Share Option Agreement (this “Agreement”), is entered into as of
«Grant_Date» by and between Avago Technologies Limited, a company organized under the laws of
Singapore, hereinafter referred to as the “Company,” and «Name», an employee of the Company or a
Subsidiary (as defined below) or Affiliate (as defined below) of the Company, hereinafter referred
to as “Optionee.”

          WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase ordinary shares
of the Company (“Shares”);

          WHEREAS, the Company wishes to carry out the Plan (as defined below), the terms of which are
hereby incorporated by reference and made a part of this Agreement; and

          WHEREAS, the Committee (as defined below) appointed to administer the Plan has determined that
it would be to the advantage and best interest of the Company and its shareholders to grant the
Non-Qualified Share Option(s) provided for herein to the Optionee as an incentive for increased
efforts during his term of employment with the Company or its Subsidiaries or Affiliates, and has
advised the Company thereof and instructed the undersigned officers to issue said Options;

          NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree
as follows:

ARTICLE I

DEFINITIONS

          Whenever the following terms are used in this Agreement, they shall have the meaning specified
in the Plan or below unless the context clearly indicates to the contrary.

     Section 1.1 — Affiliate

          “Affiliate” shall mean (a) with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, such Person, and (b) with respect to the
Company, also any entity designated by the Board of Directors in which the Company or one of its
Affiliates has an interest, and (c) Kohlberg Kravis Roberts & Co., L.P. (“KKR”), Silver Lake
Partners LLC (“SLP”) and any Affiliate of any partner of KKR or SLP. For purposes of this
Agreement, “Person” means an individual, partnership, corporation,
business trust, joint stock company, trust, unincorporated association, joint venture,

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governmental
authority or other entity of whatever nature, and “control” shall have the meaning given such term
under Rule 405 of the Securities Act.

     Section 1.2 — Board of Directors

          “Board of Directors” shall mean the Board of Directors of the Company.

     Section 1.3 — Cause

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

     Section 1.4 — Code

          “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended.

     Section 1.5 — Committee

          “Committee” shall mean the Board of Directors or, if administration of the Plan is delegated
by the Board of Directors to it, the Compensation Committee of the Board of Directors or any other
committee of the Board of Directors designated by the Board of Directors to administer the Plan.

     Section 1.6 — Determination Date

          “Determination Date” means the October 31 immediately following the Vesting Reference Date and
each of the next four anniversaries thereof.

     Section 1.7 — “Good Reason”

          “Good Reason” means i) a reduction in Optionee’s base salary (other than as part of a broad
salary reduction program instituted because the Company or the Subsidiary by which Optionee is
employed is in financial distress), (ii) a substantial reduction in Optionee’s duties and
responsibilities, (iii) the elimination or reduction of Optionee’s eligibility to participate in
the
Company’s benefit programs that is inconsistent with the eligibility of similarly situated

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employees of the Company to participate therein, (iv) the Company informs the Optionee of its
intention to transfer of the Optionee’s primary workplace to a location that is more than 25 miles
from the Optionee’s workplace at the time of the Vesting Reference Date, and (v) any serious
chronic mental or physical illness of a member of the Optionee’s family that requires Optionee to
terminate his or her employment because of a substantial interference with his or her duties at the
Company, provided that at the Company’s request Optionee shall provide the Company with a
written physician’s statement confirming the existence of such mental or physical illness.

     Section 1.8 — Options

          “Options” shall mean the Non-Qualified Share Options, which may include a Time Option and/or a
Performance Option, to purchase Shares granted under this Agreement.

     Section 1.9 — Partnerships

          “Partnerships” shall mean KKR and SLP.

     Section 1.10 — Performance Option

          “Performance Option” shall mean an Option with respect to which the commencement of
exercisability is governed by Section 3.1(b) hereof.

     Section 1.11 — Permanent Disability

          The Optionee shall be deemed to have a “Permanent Disability” if the Optionee is unable to
engage in the activities required by his employment by reason of any medically determined physical
or mental impairment which can be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than 12 months, as reasonably determined by
the Board of Directors in good faith and in its discretion.

     Section 1.12 — Permitted Retirement

          “Permitted Retirement” shall mean retirement at age 55 or over (or such other age as may be
approved by the Board of Directors) after at least fifteen years of continuous employment with the
Company or one of its Subsidiaries or Affiliates. For the purposes of the preceding sentence,
employment with a Predecessor shall be deemed to be employment with the Company.

     Section 1.13 — Plan

          “Plan” shall mean the Amended and Restated Equity Incentive Plan for Executive Employees of
Avago Technologies Limited and Subsidiaries, as the same may be amended from time to time.

«Name» — Stock Option Agreement

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     Section 1.14 — Predecessor

          “Predecessor” shall mean the Hewlett-Packard Company, Agilent Technologies, Inc. or any of
their Subsidiaries or Affiliates.

     Section 1.15 — Pronouns

          The masculine pronoun shall include the feminine and neuter, and the singular the plural,
where the context so indicates.

     Section 1.16 — Secretary

          “Secretary” shall mean the Secretary of the Company.

     Section 1.17 — Securities Act

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

     Section 1.18 — Shareholders Agreement

          “Shareholders Agreement” shall mean that certain Management Shareholders Agreement dated as of
even date herewith by and between the Company, the Optionee and other shareholders of the Company.

     Section 1.19 — Subsidiary

          “Subsidiary” with respect to any entity shall mean any corporation in an unbroken chain of
corporations beginning with such entity if each of the corporations, or group of commonly
controlled corporations, other than the last corporation in the unbroken chain, then owns shares
possessing 50% or more of the total combined voting power of all classes of equity in one of the
other corporations in such chain.

     Section 1.20 — Time Option

          “Time Option” shall mean an Option with respect to which the commencement of exercisability is
governed by Section 3.1(a) hereof.

     Section 1.21 — Vesting Reference Date

          “Vesting Reference Date” shall mean the date set forth on the signature page hereof.

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ARTICLE II

GRANT OF OPTIONS

     Section 2.1 — Grant of Options

          For good and valuable consideration, on and as of the date hereof the Company irrevocably
grants to the Optionee a Time Option and/or a Performance Option to purchase any part or all of an
aggregate of the number of Shares set forth with respect to each such Option on the signature page
hereof upon the terms and conditions set forth in this Agreement.

     Section 2.2 — Exercise Price

          The per share exercise price of the Shares covered by the Option(s) shall be the amount set
forth on the signature page hereof.

     Section 2.3 — Consideration to the Company

          In consideration of the granting of these Option(s) by the Company, the Optionee agrees to
render faithful and efficient services to the Company or one of its Subsidiaries or Affiliates,
with such duties and responsibilities as the Company shall from time to time prescribe. Nothing in
this Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of
the Company or any of its Subsidiaries or Affiliates or shall interfere with or restrict in any way
the rights of the Company and its Subsidiaries and Affiliates, which are hereby expressly reserved,
to terminate the employment of the Optionee at any time for any reason whatsoever, with or without
Cause.

     Section 2.4 — Adjustments in Options

          Subject to Section 9 of the Plan, in the event that the outstanding Shares subject to an
Option are, from time to time, changed into or exchanged for cash or a different number or kind of
shares of the Company or other securities of the Company by reason of a merger, consolidation,
recapitalization, reclassification, stock split, stock dividend, combination of shares, or
otherwise, the Committee shall make an appropriate and equitable adjustment in the number and kind
of shares or other consideration and the exercise price as to which such Option, or portions
thereof then unexercised, shall be exercisable in order to prevent dilution or enlargement of the
benefits intended to be made available with respect to any Option. Any such adjustment made by the
Committee shall be final and binding upon the Optionee, the Company and all other interested
persons.

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ARTICLE III

PERIOD OF EXERCISABILITY

     Section 3.1 — Commencement of Exercisability

          (a) The Time Option shall become exercisable with respect to 20% of the Shares subject to such
Time Option on each anniversary of the Vesting Reference Date. Notwithstanding the foregoing,
immediately prior to the consummation of a sale by the Company of the business unit that employs
the Optionee, as determined by the Board in its sole discretion, to the extent not previously
vested, the Time Option shall become exercisable with respect to 20% of the Shares subject to such
Time Option.

          (b) On each Vesting Reference Date, the Performance Option shall become exercisable for an
incremental percentage of the Shares subject to such Option equal to the product of 20% and the
Achievement Ratio for the year ending on the immediately preceding Determination Date, provided
that on each Determination Date in no event shall the total percentage of Shares subject to the
Performance Option that are exercisable be greater than the product of (i) 20% and (ii) the number
of Determination Dates (including such Determination Date) as have fallen from and after the
Vesting Reference Date. For the avoidance of doubt, in the event that the Achievement Ratio is
greater than 1.0 for any year, the Performance Option shall become exercisable for an incremental
percentage of the Shares subject to such Option that did not become exercisable in any preceding
year (commencing with immediately preceding year) as a result of the Achievement Ratio for any such
preceding year being less than 1.0.

               For purposes of this Section 3.1 the “Achievement Ratio” for each fiscal year shall be defined
in Exhibit A.

          (c) Notwithstanding the foregoing, no Option or portion thereof shall become exercisable as to
any additional Shares following the termination of employment of the Optionee for any reason and
any Option which is non-exercisable as of the Optionee’s termination of employment shall be
immediately cancelled.

     Section 3.2 — Expiration of Options

               Except as otherwise provided in the Shareholders Agreement, the Options may not be exercised
to any extent by anyone after the first to occur of the following events:

     (a) The tenth anniversary of the date hereof;

     (b) The first anniversary of the date of the Optionee’s termination of employment by
reason of death or Permanent Disability;

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     (c) The first business day which is ninety calendar days after the termination of
employment of the Optionee for any reason other than for Cause, death or Permanent
Disability;

     (d) The date the Option is terminated pursuant to the Shareholders Agreement;

     (e) With respect to the Performance Option, the fifth anniversary of the Vesting
Reference Date, to the extent not previously vested;

     (f) The opening of business on the date of an Optionee’s termination of employment by
the Company for Cause;

     (g) If the Committee so determines pursuant to Section 9 of the Plan, the effective
date of either the merger or consolidation of the Company into another Person, or the
exchange or acquisition by another Person of all or substantially all of the Company’s
assets or 80% or more of its then outstanding voting shares, or the recapitalization,
reclassification, liquidation or dissolution of the Company. At least ten (10) days prior
to the effective date of such merger, consolidation, exchange, acquisition,
recapitalization, reclassification, liquidation or dissolution, the Committee shall give the
Optionee notice of such event if the Option has then neither been fully exercised nor become
unexercisable under this Section 3.2.

ARTICLE IV

EXERCISE OF OPTION

     Section 4.1 — Person Eligible to Exercise

          During the lifetime of the Optionee, only he may exercise an Option or any portion thereof.
After the death of the Optionee, any exercisable portion of an Option may, prior to the time when
an Option becomes unexercisable under Section 3.2, be exercised by his personal representative or
by any person empowered to do so under the Optionee’s will or under the then applicable laws of
descent and distribution.

     Section 4.2 — Partial Exercise

          Any exercisable portion of an Option or the entire Option, if then wholly exercisable, may be
exercised in whole or in part at any time prior to the time when the Option or portion thereof
becomes unexercisable under Section 3.2; provided, however, that any partial exercise shall be for
whole Shares only.

     Section 4.3 - Notice of Intent to Exercise

          Until such time as the Option and the Shares to be acquired pursuant to the exercise of the
Option are registered on a Form S-8 Registration Statement or any successor form
thereto (or are otherwise registered pursuant to the Securities Act), no less than ten (10)
business

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days prior to the date the Optionee, or other person then entitled to exercise, intends to
exercise the Options or any portion thereof, the Optionee, or such other person, shall provide the
Company notice in writing stating such intent.

     Section 4.4 — Manner of Exercise

          An Option, or any exercisable portion thereof, may be exercised solely by delivering to the
Secretary or his office all of the following prior to the time when the Option or such portion
becomes unexercisable under Section 3.2:

     (a) Notice in writing signed by the Optionee or the other person then entitled to
exercise the Option or portion thereof, stating that the Option or portion thereof is
thereby exercised, such notice complying with all applicable rules established by the
Committee;

     (b) Full payment (in cash, by check or by a combination thereof or by such other means
as may be approved by the Committee in its sole discretion) for the Shares with respect to
which such Option or portion thereof is exercised;

     (c) A bona fide written representation and agreement, in a form satisfactory to the
Committee, signed by the Optionee or other person then entitled to exercise such Option or
portion thereof, stating (i) that the Shares are being acquired for his own account, for
investment and without any present intention of distributing or reselling said shares or any
of them except as may be permitted under the Securities Act, and then applicable rules and
regulations thereunder, (ii) that, if applicable (as determined by the Company), the
Optionee has received, read and understood the Company’s Rule 701 Disclosure Statement and
(iii) that the Optionee or other person then entitled to exercise such Option or portion
thereof will indemnify the Company against and hold it free and harmless from any loss,
damage, expense or liability resulting to the Company if any sale or distribution of the
            shares by such person is contrary to the representation and agreement referred to above;
provided, however, that the Committee may, in its absolute discretion, take whatever
additional actions it deems appropriate to ensure the observance and performance of such
representation and agreement and to effect compliance with the Securities Act, any other
U.S. federal or state securities laws or regulations and any other applicable laws or
regulations;

     (d) Full payment to the Company (in cash, by check or by a combination thereof) of all
amounts which, under federal, state or local law, it is required to withhold upon exercise
of the Option; and

     (e) In the event the Option or portion thereof shall be exercised pursuant to Section
4.1 by any person or persons other than the Optionee, appropriate proof of the right of such
person or persons to exercise the Option.

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Notwithstanding the foregoing, upon Optionee’s termination of employment by the Company without
Cause, by the Optionee for Good Reason or as a Permitted Retirement, or by reason of death or
Permanent Disability, in satisfaction of the payments required by Sections 4.4(b) and (d) above,
Optionee may execute a cashless exercise, net of such payments, pursuant to a formal program
adopted by the Company in connection with the Plan provided that such a cashless exercise would
not, as determined by the Committee in its sole discretion, (i) cause the Company or its
Subsidiaries to breach any debt agreement to which the Company or any of its Subsidiaries is a
party, (ii) result in a violation under Section 409A of the Code or the regulations promulgated
thereunder, (iii) be otherwise prohibited by the Code or the regulations promulgated thereunder or
(iv) result in negative accounting treatment under Generally Accepted Accounting Principles
(“GAAP”).

Without limiting the generality of this Section 4.4, the Committee may require an opinion of
counsel acceptable to it to the effect that any subsequent transfer of shares acquired on exercise
of an Option does not violate the Securities Act, and may issue stop-transfer orders covering such
Shares. Share certificates evidencing Shares issued on exercise of this Option shall bear an
appropriate legend referring to the provisions of subsection (c) above and the agreements herein.
The written representation and agreement referred to in subsection (c) above shall, however, not be
required if the Shares to be issued pursuant to such exercise have been registered under the
Securities Act, and such registration is then effective in respect of such Shares.

     Section 4.5 — Conditions to Issuance of Certificates

          The Shares deliverable upon the exercise of an Option, or any portion thereof, may be either
previously authorized but unissued Shares or, subject to applicable laws, issued Shares which have
then been reacquired by the Company. Such Shares shall be fully paid and nonassessable. The
Company shall not be required to issue or deliver any certificate or certificates for Shares
purchased upon the exercise of an Option or portion thereof prior to fulfillment of all of the
following conditions:

     (a) The obtaining of approval or other clearance from any governmental agency which the
Committee shall, in its absolute discretion, determine to be necessary or advisable; and

     (b) The lapse of such reasonable period of time following the exercise of the Option as
the Committee may from time to time establish for reasons of administrative convenience;
provided, however, that no delay in the issuance of any certificate to be issued hereunder
shall operate to prejudice or impair the Optionee’s rights to participate in a corporate
transaction providing for the disposition of Shares or to exercise his rights under the
Shareholders Agreement.

     Section 4.6 — Rights as Shareholder

          The holder of an Option shall not be, nor have any of the rights or privileges of, a
shareholder of the Company in respect of any Shares purchasable upon the exercise of the

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Option or any portion thereof unless and until certificates representing such Shares shall have
been issued by the Company to such holder.

     Section 4.7 Covenant Regarding 83(b) Election

          The Optionee hereby covenants and agrees that, unless otherwise determined by the Company,
Optionee will make an election pursuant to Treasury Regulation 1.83-2 with respect to the Shares to
be acquired upon each exercise of the Optionee’s Options by filing with the Internal Revenue
Service such election substantially in the form attached hereto as Exhibit B; and the Optionee
further covenants and agrees that he will furnish the Company with copies of the forms of election
the Optionee files within 30 days after each exercise of the Optionee’s Options and with evidence
that each such election has been filed in a timely manner.

ARTICLE V

MISCELLANEOUS

     Section 5.1 — Administration

          The Committee shall have the power to interpret the Plan and this Agreement and to adopt such
rules for the administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all interpretations and
determinations made by the Committee shall be final and binding upon the Optionee, the Company and
all other interested persons. No member of the Committee shall be personally liable for any
action, determination or interpretation made in good faith with respect to the Plan or the Options.
In its absolute discretion, the Board of Directors may at any time and from time to time exercise
any and all rights and duties of the Committee under the Plan and this Agreement.

     Section 5.2 — Options Not Transferable

          Neither the Options nor any interest or right therein or part thereof shall be liable for the
debts, contracts or engagements of the Optionee or his successors in interest or shall be subject
to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect; provided, however,
that this Section 5.2 shall not prevent transfers by will or by the applicable laws of descent and
distribution.

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     Section 5.3 — Shares to Be Reserved

          The Company shall at all times during the term of the Options reserve and keep available such
number of Shares as will be sufficient to satisfy the requirements of this Agreement.

     Section 5.4 — Notices

          Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary, and any notice to be given to the Optionee shall be addressed
to him at his most recent address as reflected in the Company’s records. By a notice given
pursuant to this Section 5.4, either party may hereafter designate a different address for notices
to be given to him or it. Any notice which is required to be given to the Optionee shall, if the
Optionee is then deceased, be given to the Optionee’s personal representative if such
representative has previously informed the Company of his status and address by written notice
under this Section 5.4. Any notice shall have been deemed duly given when enclosed in a properly
sealed envelope or wrapper addressed as aforesaid, and delivered by hand (whether by courier or
otherwise) or sent by registered or certified mail, return receipt requested (with postage
prepaid).

     Section 5.5 — Titles

          Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

     Section 5.6 — Applicability of Plan and Shareholders Agreement

          The Options and the Shares issued to the Optionee upon exercise of the Options shall be
subject to all of the terms and provisions of the Plan and the Shareholders Agreement, to the
extent applicable to the Options and such Shares. In the event of any conflict between this
Agreement and the Plan, the terms of the Plan shall control. In the event of any conflict between
this Agreement or the Plan and the Shareholders Agreement, the terms of the Shareholders Agreement
shall control.

     Section 5.7 — Amendment

          This Agreement may be amended only by a writing executed by the parties hereto, which
specifically states that it is amending this Agreement.

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     Section 5.8 — Jurisdiction

          Any suit, action or proceeding against the Optionee with respect to this Agreement, or any
judgment entered by any court in respect of any thereof, may be brought in any court of competent
jurisdiction in the State of California, and the Optionee hereby submits to the exclusive
jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. The
Optionee hereby irrevocably waives any objections which he may now or hereafter have to the laying
of the venue of any suit, action or proceeding arising out of or relating to this Agreement brought
in any court of competent jurisdiction in the State of California, and hereby further irrevocably
waives any claim that any such suit, action or proceeding brought in any such court has been
brought in any inconvenient forum. No suit, action or proceeding against the Company with respect
to this Agreement may be brought in any court, domestic or foreign, or before any similar domestic
or foreign authority other than in a court of competent jurisdiction in the State of California,
and the Optionee hereby irrevocably waives any right which he may otherwise have had to bring such
an action in any other court, domestic or foreign, or before any similar domestic or foreign
authority. The Company hereby submits to the jurisdiction of such courts for the purpose of any
such suit, action or proceeding.

     Section 5.9 —  Employee Representation and Acknowledgement

          By signing this Agreement, the Optionee hereby represents, acknowledges and confirms that the
Optionee has read this Agreement carefully and completely and understands each of the terms hereof.

(Signature Page Follows)

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          IN WITNESS WHEREOF, this Non-Qualified Share Option Agreement has been executed and delivered
by the parties hereto as of the date first written above.

	 	 	 	 	 	 	 	 	 
	«NAME», OPTIONEE	 	 	 	COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Signature

	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Optionee’s Address

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

   Optionee’s Tax Identification Number

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Optionee’s Passport Number

	 	 	 	 	 	 	 	 

Aggregate number of Shares subject to Time Option: «Time_Options»

Aggregate number of Shares subject to Performance Option: «Performance_Options»

Per share exercise price: «Exercise_Price»

Grant Date: «Grant_Date»

Vesting Reference Date: «Vesting_Reference_Date»

«Name» — Stock Option Agreement

13exv10w22

 

Exhibit-10.22

Executives — New and Co-Invest Options — Singapore

NON-QUALIFIED SHARE OPTION AGREEMENT

UNDER THE EQUITY INCENTIVE PLAN

FOR EXECUTIVE EMPLOYEES OF

AVAGO TECHNOLOGIES LIMITED AND SUBSIDIARIES

          This
Non-Qualified Share Option Agreement (this “Agreement”), is
entered into as of by «Grant Date» and
between Avago Technologies Limited, a company organized under the laws of Singapore, hereinafter
referred to as the “Company,” and «Name», an employee of the Company or a Subsidiary (as defined below)
or Affiliate (as defined below) of the Company, hereinafter referred to as “Optionee.”

          WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase ordinary shares
of the Company (“Shares”);

          WHEREAS, the Company wishes to carry out the Plan (as defined below), the terms of which are
hereby incorporated by reference and made a part of this Agreement; and

          WHEREAS, the Committee (as defined below) appointed to administer the Plan has determined that
it would be to the advantage and best interest of the Company and its shareholders to grant the
Non-Qualified Share Option(s) provided for herein to the Optionee as an incentive for increased
efforts during his term of employment with the Company or its Subsidiaries or Affiliates, and has
advised the Company thereof and instructed the undersigned officers to issue said Options;

          NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree
as follows:

ARTICLE I

DEFINITIONS

          Whenever the following terms are used in this Agreement, they shall have the meaning specified
in the Plan or below unless the context clearly indicates to the contrary.

     Section 1.1 — Affiliate

          “Affiliate” shall mean (a) with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, such Person, and (b) with respect to the
Company, also any entity designated by the Board of Directors in which the Company or one of its
Affiliates has an interest, and (c) Kohlberg Kravis Roberts & Co., L.P. (“KKR”), Silver Lake
Partners LLC (“SLP”) and any Affiliate of any partner of KKR or SLP. For purposes of this
Agreement, “Person” means an individual, partnership, corporation,
business trust, joint stock company, trust, unincorporated association, joint venture,

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governmental
authority or other entity of whatever nature, and “control” shall have the meaning given such term
under Rule 405 of the Securities Act.

     Section 1.2 — Board of Directors

          “Board of Directors” shall mean the Board of Directors of the Company.

     Section 1.3 — Cause

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

     Section 1.4 — Code

          “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended.

     Section 1.5 — Committee

          “Committee” shall mean the Board of Directors or, if administration of the Plan is delegated
by the Board of Directors to it, the Compensation Committee of the Board of Directors or any other
committee of the Board of Directors designated by the Board of Directors to administer the Plan.

     Section 1.6 — Determination Date

          “Determination Date” means the October 31 immediately following the Vesting Reference Date and
each of the next four anniversaries thereof.

     Section 1.7 — “Good Reason”

          “Good Reason” means i) a reduction in Optionee’s base salary (other than as part of a broad
salary reduction program instituted because the Company or the Subsidiary by which Optionee is
employed is in financial distress), (ii) a substantial reduction in Optionee’s duties and
responsibilities, (iii) the elimination or reduction of Optionee’s eligibility to participate in
the
Company’s benefit programs that is inconsistent with the eligibility of similarly situated

«Name» — Stock Option Agreement

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employees of the Company to participate therein, (iv) the Company informs the Optionee of its
intention to transfer of the Optionee’s primary workplace to a location that is more than 25 miles
from the Optionee’s workplace at the time of the Vesting Reference Date, and (v) any serious
chronic mental or physical illness of a member of the Optionee’s family that requires Optionee to
terminate his or her employment because of a substantial interference with his or her duties at the
Company, provided that at the Company’s request Optionee shall provide the Company with a
written physician’s statement confirming the existence of such mental or physical illness.

     Section 1.8 — Options

          “Options” shall mean the Non-Qualified Share Options, which may include a Time Option and/or a
Performance Option, to purchase Shares granted under this Agreement.

     Section 1.9 — Partnerships

          “Partnerships” shall mean KKR and SLP.

     Section 1.10 — Performance Option

          “Performance Option” shall mean an Option with respect to which the commencement of
exercisability is governed by Section 3.1(b) hereof.

     Section 1.11 — Permanent Disability

          The Optionee shall be deemed to have a “Permanent Disability” if the Optionee is unable to
engage in the activities required by his employment by reason of any medically determined physical
or mental impairment which can be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than 12 months, as reasonably determined by
the Board of Directors in good faith and in its discretion.

     Section 1.12 — Permitted Retirement

          “Permitted Retirement” shall mean retirement at age 55 or over (or such other age as may be
approved by the Board of Directors) after at least fifteen years of continuous employment with the
Company or one of its Subsidiaries or Affiliates. For the purposes of the preceding sentence,
employment with a Predecessor shall be deemed to be employment with the Company.

     Section 1.13 — Plan

          “Plan” shall mean the Equity Incentive Plan for Executive Employees of Avago Technologies
Limited and Subsidiaries, as the same may be amended from time to time.

     Section 1.14 — Predecessor

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          “Predecessor” shall mean the Hewlett-Packard Company, Agilent Technologies, Inc. or any of
their Subsidiaries or Affiliates.

     Section 1.15 — Pronouns

          The masculine pronoun shall include the feminine and neuter, and the singular the plural,
where the context so indicates.

     Section 1.16 — Secretary

          “Secretary” shall mean the Secretary of the Company.

     Section 1.17 — Securities Act

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

     Section 1.18 — Shareholder’s Agreement

          “Shareholder’s Agreement” shall mean that certain Management Shareholder’s Agreement dated as
of even date herewith by and between the Company, the Optionee and other shareholders of the
Company.

     Section 1.19 — Subsidiary

          “Subsidiary” with respect to any entity shall mean any corporation in an unbroken chain of
corporations beginning with such entity if each of the corporations, or group of commonly
controlled corporations, other than the last corporation in the unbroken chain, then owns shares
possessing 50% or more of the total combined voting power of all classes of equity in one of the
other corporations in such chain.

     Section 1.20 — Time Option

          “Time Option” shall mean an Option with respect to which the commencement of exercisability is
governed by Section 3.1(a) hereof.

     Section 1.21 — U.S. Person

          “U.S. Person” has the meaning accorded to it in Rule 902(k) of the Securities Act, and
currently includes the following:

          (a) Any natural person resident in the United States;

          (b) Any partnership or corporation organized or incorporated under the laws of the United
States;

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          (c) Any estate of which any executor or administrator is a U.S. Person;

          (d) Any trust of which any trustee is a U.S. Person;

          (e) Any agency or branch of a foreign entity located in the United States;

          (f) Any non-discretionary account or similar account (other than an estate or trust) held by a
dealer or other fiduciary for the benefit or account of a U.S. Person;

          (g) Any discretionary account or similar account (other than an estate or trust) held by a
dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United
States; and

          (h) Any partnership or corporation if:

     (i) Organized or incorporated under the laws of any foreign jurisdiction; and

     (ii) Formed by a U.S. Person principally for the purpose of investing in
securities not registered under the Securities Act, unless it is organized or
incorporated, and owned, by accredited investors (as defined in Rule 501(a) under
the Securities Act of 1933, as amended) who are not natural persons, estates or
trusts.

     Section 1.22 — Vesting Reference Date

          “Vesting Reference Date” shall mean the date set forth on the signature page hereof.

ARTICLE II

GRANT OF OPTIONS

     Section 2.1 — Grant of Options

          For good and valuable consideration, on and as of the date hereof the Company irrevocably
grants to the Optionee a Time Option and/or a Performance Option to purchase any part or all of an
aggregate of the number of Shares set forth with respect to each such Option on the signature page
hereof upon the terms and conditions set forth in this Agreement.

     Section 2.2 — Exercise Price

          The per share exercise price of the Shares covered by the Option(s) shall be the amount set
forth on the signature page hereof.

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     Section 2.3 — Consideration to the Company

          In consideration of the granting of these Option(s) by the Company, the Optionee agrees to
render faithful and efficient services to the Company or one of its Subsidiaries or Affiliates,
with such duties and responsibilities as the Company shall from time to time prescribe. Nothing in
this Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of
the Company or any of its Subsidiaries or Affiliates or shall interfere with or restrict in any way
the rights of the Company and its Subsidiaries and Affiliates, which are hereby expressly reserved,
to terminate the employment of the Optionee at any time for any reason whatsoever, with or without
Cause.

     Section 2.4 — Adjustments in Options

          Subject to Section 9 of the Plan, in the event that the outstanding Shares subject to an
Option are, from time to time, changed into or exchanged for cash or a different number or kind of
shares of the Company or other securities of the Company by reason of a merger, consolidation,
recapitalization, reclassification, stock split, stock dividend, combination of shares, or
otherwise, the Committee shall make an appropriate and equitable adjustment in the number and kind
of shares or other consideration and the exercise price as to which such Option, or portions
thereof then unexercised, shall be exercisable in order to prevent dilution or enlargement of the
benefits intended to be made available with respect to any Option. Any such adjustment made by the
Committee shall be final and binding upon the Optionee, the Company and all other interested
persons.

ARTICLE III

PERIOD OF EXERCISABILITY

     Section 3.1 — Commencement of Exercisability

          (a) The Time Option shall become exercisable with respect to 20% of the Shares subject to such
Time Option on each anniversary of the Vesting Reference Date. Notwithstanding the foregoing,
immediately prior to the consummation of a sale by the Company of the business unit that employs
the Optionee, as determined by the Board in its sole discretion, to the extent not previously
vested, the Time Option shall become exercisable with respect to 20% of the Shares subject to such
Time Option.

          (b) On each Vesting Reference Date, the Performance Option shall become exercisable for an
incremental percentage of the Shares subject to such Option equal to the product of 20% and the
Achievement Ratio for the year ending on the immediately preceding Determination Date, provided
that on each Determination Date in no event shall the total percentage of Shares subject to the
Performance Option that are exercisable be greater than the
product of (i) 20% and (ii) the number of Determination Dates (including such Determination

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Date) as have fallen from and after the Vesting Reference Date. For the avoidance of doubt, in the
event that the Achievement Ratio is greater than 1.0 for any year, the Performance Option shall
become exercisable for an incremental percentage of the Shares subject to such Option that did not
become exercisable in any preceding year (commencing with immediately preceding year) as a result
of the Achievement Ratio for any such preceding year being less than 1.0.

          For purposes of this Section 3.1 the “Achievement Ratio” for each fiscal year shall be defined
in Exhibit A.

          (c) Notwithstanding the foregoing, no Option or portion thereof shall become exercisable as to
any additional Shares following the termination of employment of the Optionee for any reason and
any Option which is non-exercisable as of the Optionee’s termination of employment shall be
immediately cancelled.

     Section 3.2 — Expiration of Options

          Except as otherwise provided in the Shareholder’s Agreement, the Options may not be exercised
to any extent by anyone after the first to occur of the following events:

     (a) In the case of an Option granted to an Employee, the tenth anniversary of the date
hereof, and in the case of an Option granted to a service provider other than an Employee,
the fifth anniversary of the date hereof;

     (b) The first anniversary of the date of the Optionee’s termination of employment by
reason of death or Permanent Disability;

     (c) The first business day which is ninety calendar days after the termination of
employment of the Optionee for any reason other than for Cause, death or Permanent
Disability;

     (d) The date the Option is terminated pursuant to the Shareholder’s Agreement;

     (e) With respect to the Performance Option, the fifth anniversary of the Vesting
Reference Date, to the extent not previously vested;

     (f) The opening of business on the date of an Optionee’s termination of employment by
the Company for Cause;

     (g) If the Committee so determines pursuant to Section 9 of the Plan, the effective
date of either the merger or consolidation of the Company into another Person, or the
exchange or acquisition by another Person of all or substantially all of the Company’s
assets or 80% or more of its then outstanding voting shares, or the recapitalization,
reclassification, liquidation or dissolution of the Company. At least ten (10) days prior
to the effective date of such merger, consolidation, exchange, acquisition,
recapitalization, reclassification, liquidation or dissolution, the Committee shall
give the

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Optionee notice of such event if the Option has then neither been fully exercised
nor become unexercisable under this Section 3.2.

ARTICLE IV

EXERCISE OF OPTION

     Section 4.1 — Person Eligible to Exercise

          During the lifetime of the Optionee, only he may exercise an Option or any portion thereof.
After the death of the Optionee, any exercisable portion of an Option may, prior to the time when
an Option becomes unexercisable under Section 3.2, be exercised by his personal representative or
by any person empowered to do so under the Optionee’s will or under the then applicable laws of
descent and distribution.

     Section 4.2 — Partial Exercise

          Any exercisable portion of an Option or the entire Option, if then wholly exercisable, may be
exercised in whole or in part at any time prior to the time when the Option or portion thereof
becomes unexercisable under Section 3.2; provided, however, that any partial exercise shall be for
whole Shares only.

     Section 4.3 — Manner of Exercise

          An Option, or any exercisable portion thereof, may be exercised solely by delivering to the
Secretary or his office all of the following prior to the time when the Option or such portion
becomes unexercisable under Section 3.2:

     (a) Notice in writing signed by the Optionee or the other person then entitled to
exercise the Option or portion thereof, stating that the Option or portion thereof is
thereby exercised, such notice complying with all applicable rules established by the
Committee;

     (b) Full payment (in cash, by check or by a combination thereof or by such other means
as may be approved by the Committee in its sole discretion) for the Shares with respect to
which such Option or portion thereof is exercised;

     (c) A bona fide written representation and agreement, in a form satisfactory to the
Committee, signed by the Optionee or other person then entitled to exercise such Option or
portion thereof, stating (i) that the Shares are being acquired for his own account, for
investment and without any present intention of distributing or reselling said shares or any
of them except as may be permitted under the Securities Act, and then applicable rules and
regulations thereunder, (ii) that the Optionee or other person then
entitled to exercise such Option or portion thereof has not been a U.S. Person from the
date such person was granted or otherwise transferred the Option through the date of

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exercise of the Option or portion thereof and (iii) that the Optionee or other person then
entitled to exercise such Option or portion thereof will indemnify the Company against and
hold it free and harmless from any loss, damage, expense or liability resulting to the
Company if any sale or distribution of the shares by such person is contrary to the
representation and agreement referred to above; provided, however, that the Committee may,
in its absolute discretion, take whatever additional actions it deems appropriate to ensure
the observance and performance of such representation and agreement and to effect compliance
with the Securities Act, any other U.S. federal or state securities laws or regulations and
any other applicable laws or regulations;

     (d) Full payment to the Company (in cash, by check or by a combination thereof) of all
amounts which, under federal, state or local law, it is required to withhold upon exercise
of the Option; and

     (e) In the event the Option or portion thereof shall be exercised pursuant to Section
4.1 by any person or persons other than the Optionee, appropriate proof of the right of such
person or persons to exercise the Option.

Notwithstanding the foregoing, upon Optionee’s termination of employment by the Company without
Cause, by the Optionee for Good Reason or as a Permitted Retirement, or by reason of death or
Permanent Disability, in satisfaction of the payments required by Sections 4.3(b) and (d) above,
Optionee may execute a cashless exercise, net of such payments, pursuant to a formal program
adopted by the Company in connection with the Plan provided that such a cashless exercise would
not, as determined by the Committee in its sole discretion, (i) cause the Company or its
Subsidiaries to breach any debt agreement to which the Company or any of its Subsidiaries is a
party, (ii) result in a violation under Section 409A of the Code or the regulations promulgated
thereunder, (iii) be otherwise prohibited by the Code or the regulations promulgated thereunder or
(iv) result in negative accounting treatment under Generally Accepted Accounting Principles
(“GAAP”).

Without limiting the generality of this Section 4.3, the Committee may require an opinion of
counsel acceptable to it to the effect that any subsequent transfer of shares acquired on exercise
of an Option does not violate the Securities Act, and may issue stop-transfer orders covering such
Shares. Share certificates evidencing Shares issued on exercise of this Option shall bear an
appropriate legend referring to the provisions of subsection (c) above and the agreements herein.
The written representation and agreement referred to in subsection (c) above shall, however, not be
required if the Shares to be issued pursuant to such exercise have been registered under the
Securities Act, and such registration is then effective in respect of such Shares.

     Section 4.4 — Conditions to Issuance of Certificates

          The Shares deliverable upon the exercise of an Option, or any portion thereof, may be either
previously authorized but unissued Shares or, subject to applicable laws, issued
Shares which have then been reacquired by the Company. Such Shares shall be fully paid and
nonassessable. The Company shall not be required to issue or deliver any certificate or

«Name» — Stock Option Agreement

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certificates for Shares purchased upon the exercise of an Option or portion thereof prior to
fulfillment of all of the following conditions:

     (a) The obtaining of approval or other clearance from any governmental agency which the
Committee shall, in its absolute discretion, determine to be necessary or advisable; and

     (b) The lapse of such reasonable period of time following the exercise of the Option as
the Committee may from time to time establish for reasons of administrative convenience;
provided, however, that no delay in the issuance of any certificate to be issued hereunder
shall operate to prejudice or impair the Optionee’s rights to participate in a corporate
transaction providing for the disposition of Shares or to exercise his rights under the
Shareholder’s Agreement.

     Section 4.5 — Rights as Shareholder

          The holder of an Option shall not be, nor have any of the rights or privileges of, a
shareholder of the Company in respect of any Shares purchasable upon the exercise of the Option or
any portion thereof unless and until certificates representing such Shares shall have been issued
by the Company to such holder.

ARTICLE V

MISCELLANEOUS

     Section 5.1 — Administration

          The Committee shall have the power to interpret the Plan and this Agreement and to adopt such
rules for the administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all interpretations and
determinations made by the Committee shall be final and binding upon the Optionee, the Company and
all other interested persons. No member of the Committee shall be personally liable for any
action, determination or interpretation made in good faith with respect to the Plan or the Options.
In its absolute discretion, the Board of Directors may at any time and from time to time exercise
any and all rights and duties of the Committee under the Plan and this Agreement.

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     Section 5.2 — Options Not Transferable

          Neither the Options nor any interest or right therein or part thereof shall be liable for the
debts, contracts or engagements of the Optionee or his successors in interest or shall be subject
to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect; provided, however,
that this Section 5.2 shall not prevent transfers by will or by the applicable laws of descent and
distribution.

     Section 5.3 — Shares to Be Reserved

          The Company shall at all times during the term of the Options reserve and keep available such
number of Shares as will be sufficient to satisfy the requirements of this Agreement.

     Section 5.4 — Notices

          Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary, and any notice to be given to the Optionee shall be addressed
to him at his most recent address as reflected in the Company’s records. By a notice given
pursuant to this Section 5.4, either party may hereafter designate a different address for notices
to be given to him or it. Any notice which is required to be given to the Optionee shall, if the
Optionee is then deceased, be given to the Optionee’s personal representative if such
representative has previously informed the Company of his status and address by written notice
under this Section 5.4. Any notice shall have been deemed duly given when enclosed in a properly
sealed envelope or wrapper addressed as aforesaid, and delivered by hand (whether by courier or
otherwise) or sent by registered or certified mail, return receipt requested (with postage
prepaid).

     Section 5.5 — Titles

          Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

     Section 5.6 — Applicability of Plan and Shareholder’s Agreement

          The Options and the Shares issued to the Optionee upon exercise of the Options shall be
subject to all of the terms and provisions of the Plan and the Shareholder’s Agreement, to the
extent applicable to the Options and such Shares. In the event of any conflict between this
Agreement and the Plan, the terms of the Plan shall control. In the event of any conflict between
this Agreement or the Plan and the Shareholder’s Agreement, the terms of the Shareholder’s
Agreement shall control.

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     Section 5.7 — Amendment

          This Agreement may be amended only by a writing executed by the parties hereto, which
specifically states that it is amending this Agreement.

     Section 5.8 — Jurisdiction

          Any suit, action or proceeding against the Optionee with respect to this Agreement, or any
judgment entered by any court in respect of any thereof, may be brought in any court of competent
jurisdiction in the State of California, and the Optionee hereby submits to the exclusive
jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. The
Optionee hereby irrevocably waives any objections which he may now or hereafter have to the laying
of the venue of any suit, action or proceeding arising out of or relating to this Agreement brought
in any court of competent jurisdiction in the State of California, and hereby further irrevocably
waives any claim that any such suit, action or proceeding brought in any such court has been
brought in any inconvenient forum. No suit, action or proceeding against the Company with respect
to this Agreement may be brought in any court, domestic or foreign, or before any similar domestic
or foreign authority other than in a court of competent jurisdiction in the State of California,
and the Optionee hereby irrevocably waives any right which he may otherwise have had to bring such
an action in any other court, domestic or foreign, or before any similar domestic or foreign
authority. The Company hereby submits to the jurisdiction of such courts for the purpose of any
such suit, action or proceeding.

     Section 5.9 —  — Employee Representation and Acknowledgement

          By signing this Agreement, the Optionee hereby represents, acknowledges and confirms that the
Optionee has read this Agreement carefully and completely and understands each of the terms hereof.

          By signing this Agreement, the Optionee also hereby represents that the Optionee is not a U.S.
Person as of the date hereof.

(Signature Page Follows)

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12

 

     IN WITNESS WHEREOF, this Non-Qualified Share Option Agreement has been executed and delivered
by the parties hereto as of the date first written above.

	 	 	 	 	 	 	 
	«NAME», OPTIONEE	 	COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

Signature

	 	Its
	 	 

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Optionee’s Address

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Optionee’s Tax Identification Number

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Optionee’s Passport Number

	 	 	 	 	 	 

Aggregate number of Shares subject to Time Option: «Time_Options»

Aggregate number of Shares subject to Performance Option: «Performance_Options»

Per share exercise price: «Exercise_Price»

Grant Date: «Grant_Date»

Vesting Reference Date: «Vesting_Reference_Date»

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