BROADCOM CORP
EXHIBIT 10.1
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<TYPE>EX-10.1
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<FILENAME>a94297exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P align="right"><FONT size="2">EXHIBIT 10.1</FONT>

<P align="center"><FONT size="2"><B>BROADCOM CORPORATION<BR>
<U>1998 EMPLOYEE STOCK PURCHASE PLAN</U><BR>
(as Amended and Restated March&nbsp;21, 2003)</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PURPOSE OF THE PLAN</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Employee Stock Purchase Plan is intended to promote the interests of
Broadcom Corporation by providing eligible employees with the opportunity to
acquire a proprietary interest in the Corporation through participation in a
payroll-deduction based employee stock purchase plan designed to qualify under
Section&nbsp;423 of the Code.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms herein shall have the meanings assigned to such terms in
the attached Appendix.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All share numbers in this March&nbsp;21, 2003 restatement reflect (i)&nbsp;the
two-for-one split of the Common Stock which was effected on February&nbsp;17, 1999
through the payment of a dividend of one additional share of Common Stock for
every share of Common Stock outstanding on February&nbsp;5, 1999 and (ii)&nbsp;the
two-for-one split of the Common Stock which was effected on February&nbsp;11, 2000
through the payment of a dividend of one additional share of Common Stock for
every share of Common Stock outstanding on January&nbsp;31, 2000.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATION OF THE PLAN</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan Administrator shall have full authority to interpret and construe
any provision of the Plan and to adopt such rules and regulations for
administering the Plan as it may deem necessary in order to comply with the
requirements of Code Section&nbsp;423. Decisions of the Plan Administrator shall be
final and binding on all parties having an interest in the Plan.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCK SUBJECT TO PLAN</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The stock purchasable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock, including shares of Common Stock purchased
on the open market. The maximum number of shares of Common Stock reserved for
issuance over the term of the Plan shall be limited to 6,694,509 shares. Such
reserve shall consist of (i)&nbsp;the initial share reserve of 3,000,000 shares,
(ii)&nbsp;an increase of 3,000,000 shares authorized by the Board on March&nbsp;7, 2002
and approved by the shareholders at the 2002 Annual Meeting and (iii)&nbsp;an
additional increase of 694,509 shares effected in January 2003 pursuant to the
automatic share increase provisions of Section&nbsp;III.B.
</FONT>

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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, beginning with calendar year 2003, by an
amount equal to twenty-five one hundredths of one percent (0.25%) of the
aggregate number of shares of Class&nbsp;A Common Stock and Class&nbsp;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 1,000,000
shares. Subject to shareholder approval at the 2003 Annual Meeting, the
foregoing automatic share increase provision shall be revised upward so that
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 remaining term of the Plan, beginning with calendar year 2004,
by an amount equal to one percent (1%) of the aggregate number of shares of
Class&nbsp;A Common Stock and Class&nbsp;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 3,000,000 shares.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Should any change be made to the Common Stock by reason of any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class
without the Corporation&#146;s receipt of consideration, then appropriate
adjustments shall be made to (i)&nbsp;the maximum number and class of securities
issuable under the Plan, (ii)&nbsp;the maximum number and/or class of securities by
which the share reserve under the Plan is to increase each calendar year
pursuant to the provisions of Section&nbsp;III.B, (iii)&nbsp;the maximum number and class
of securities purchasable per Participant on any one Purchase Date, (iv)&nbsp;the
maximum number and class of securities purchasable in total by all Participants
on any one Purchase Date and (v)&nbsp;the number and class of securities and the
price per share in effect under each outstanding purchase right in order to
prevent the dilution or enlargement of benefits thereunder.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OFFERING PERIODS</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Shares of Common Stock shall be offered for purchase under the Plan
through a series of successive offering periods until such time as (i)&nbsp;the
maximum number of shares of Common Stock available for issuance under the Plan
shall have been purchased or (ii)&nbsp;the Plan shall have been sooner terminated.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each offering period shall be of such duration (not to exceed
twenty-four (24)&nbsp;months) as determined by the Plan Administrator prior to the
start date of such offering period. However, the initial offering period shall
commence at the Effective Time and terminate on the last business day in April
2000. The next offering period shall commence on the first business day in May
2000, and subsequent offering periods shall commence as designated by the Plan
Administrator.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Each offering period shall be comprised of a series of one or more
successive Purchase Intervals. Purchase Intervals shall run from the first
business day in May each year to the last business day in October of the same
year and from the first business day in
</FONT>

<P align="center"><FONT size="2">2</FONT>
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<P align="left"><FONT size="2">November each year to the last business day in April of the following
year. However, the first Purchase Interval in effect under the initial
offering period shall commence at the Effective Time and terminate on the last
business day in October 1998.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Should the Fair Market Value per share of Common Stock on any Purchase
Date within an offering period be less than the Fair Market Value per share of
Common Stock on the start date of that offering period, then that offering
period shall automatically terminate immediately after the purchase of shares
of Common Stock on such Purchase Date, and a new offering period shall commence
on the next business day following such Purchase Date. The new offering period
shall have a duration of twenty (24)&nbsp;months, unless a shorter duration is
established by the Plan Administrator within five (5)&nbsp;business days following
the start date of that offering period.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELIGIBILITY</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Each individual who is an Eligible Employee on the start date of any
offering period under the Plan may enter that offering period on such start
date or on any subsequent Quarterly Entry Date within that offering period,
provided he or she remains an Eligible Employee.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each individual who first becomes an Eligible Employee after the start
date of an offering period may enter that offering period on any subsequent
Quarterly Entry Date within that offering period on which he or she is an
Eligible Employee.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Each corporation acquired by the Corporation at any time after March&nbsp;7,
2002 pursuant to a transaction in which that acquired corporation is to be
maintained as a separate Corporate Affiliate shall automatically become a
Participating Corporation effective as of the first Quarterly Entry Date
coincident with or next following the effective date of the acquisition.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The date an individual enters an offering period shall be designated
his or her Entry Date for purposes of that offering period.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. To participate in the Plan for a particular offering period, the
Eligible Employee must complete the enrollment forms prescribed by the Plan
Administrator (including a stock purchase agreement and a payroll deduction
authorization) and file such forms with the Plan Administrator (or its
designate) on or before his or her scheduled Entry Date.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAYROLL DEDUCTIONS</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The payroll deduction authorized by the Participant for purposes of
acquiring shares of Common Stock during an offering period may be any multiple
of one percent (1%) of the Cash Earnings paid to the Participant during each
Purchase Interval within that offering period, up to a maximum of fifteen
percent (15%). The deduction rate so authorized shall continue in effect
throughout the offering period, except to the extent such rate is changed in
accordance with the following guidelines:
</FONT>

<P align="center"><FONT size="2">3</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Participant may, at any time during the offering
period, reduce his or her rate of payroll deduction, by filing
the appropriate form with the Plan Administrator. Effective for
all offering periods beginning on or after May&nbsp;1, 2003, the
reduction shall become effective on the first pay day of the month
following the month in which such form is filed, and there shall
be no limit on the number of such reductions a Participant may
effect during a Purchase Interval.<SUP>1</SUP></FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Participant may, at any time during the offering
period, increase the rate of his or her payroll deduction by
filing the appropriate form with the Plan Administrator. Effective
for all offering periods beginning on or after May&nbsp;1, 2003, the
new rate (which may not exceed the fifteen percent (15%) maximum)
shall become effective on the first pay day of the month following
the month in which such form is filed, and there shall be no limit
on the number of such increases a Participant may effect during a
Purchase Interval.<SUP>2</SUP></FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Payroll deductions shall begin on the first pay day following the
Participant&#146;s Entry Date into the offering period and shall (unless sooner
terminated by the Participant) continue through the pay day ending with or
immediately prior to the last day of that offering period. The amounts so
collected shall be credited to the Participant&#146;s book account under the Plan,
but no interest shall be paid on the balance from time to time outstanding in
such account. The amounts collected from the Participant shall not be required
to be held in any segregated account or trust fund and may be commingled with
the general assets of the Corporation and used for general corporate purposes.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Payroll deductions shall automatically cease upon the termination of
the Participant&#146;s purchase right in accordance with the provisions of the Plan.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Participant&#146;s acquisition of Common Stock under the Plan on any
Purchase Date shall neither limit nor require the Participant&#146;s acquisition of
Common Stock on any subsequent Purchase Date, whether within the same or a
different offering period.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PURCHASE RIGHTS</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.
<B><U>Grant of Purchase Right.</U> </B>A Participant shall be granted a separate
purchase right for each offering period in which he or she participates. The
purchase right shall be granted on the Participant&#146;s Entry Date into the
offering period and shall provide the Participant with the right to purchase
shares of Common Stock, in a series of successive installments over the
</FONT>
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<DIV align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>1</SUP> For offering periods beginning prior to May&nbsp;1, 2003, no Participant may
effect more than one (1)&nbsp;such reduction per Purchase Interval, and any such
permissible reduction will become effective as soon as possible following the
filing of the elected reduction with the Plan Administrator.
</FONT></DIV>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>2</SUP> For offering periods beginning prior to May&nbsp;1, 2003, any increase in the
rate of payroll deduction will only become effective as of the start of the
Purchase Interval immediately following the filing of the elected increase with
the Plan Administrator, and the Participant is accordingly allowed only one
such increase per Purchase Interval.
</FONT>
<P align="center"><FONT size="2">4</FONT>
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<P align="left"><FONT size="2">remainder of such offering period, upon the terms set forth below. The
Participant shall execute a stock purchase agreement embodying such terms and
such other provisions (not inconsistent with the Plan) as the Plan
Administrator may deem advisable.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under no circumstances shall purchase rights be granted under the Plan to
any Eligible Employee if such individual would, immediately after the grant,
own (within the meaning of Code Section&nbsp;424(d)) or hold outstanding options or
other rights to purchase, stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Corporation
or any Corporate Affiliate.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.
<B><U>Exercise of the Purchase Right. </U></B>Each purchase right shall be
automatically exercised in installments on each successive Purchase Date within
the offering period, and shares of Common Stock shall accordingly be purchased
on behalf of each Participant on each such Purchase Date. The purchase shall
be effected by applying the Participant&#146;s payroll deductions for the Purchase
Interval ending on such Purchase Date to the purchase of whole shares of Common
Stock at the purchase price in effect for the Participant for that Purchase
Date.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.
<B><U>Purchase Price. </U></B>The purchase price per share at which Common Stock
will be purchased on the Participant&#146;s behalf on each Purchase Date within the
offering period shall be equal to eighty-five percent (85%) of the
<U>lower</U> of (i)
the Fair Market Value per share of Common Stock on the Participant&#146;s Entry Date
into that offering period or (ii)&nbsp;the Fair Market Value per share of Common
Stock on that Purchase Date.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <B><U>Number of Purchasable Shares. </U></B>The number of shares of Common Stock
purchasable by a Participant on each Purchase Date during the offering period
shall be the number of whole shares obtained by dividing the amount collected
from the Participant through payroll deductions during the Purchase Interval
ending with that Purchase Date by the purchase price in effect for the
Participant for that Purchase Date. However, the maximum number of shares of
Common Stock purchasable per Participant on any one Purchase Date shall not
exceed Six Thousand (6,000) shares, subject to periodic adjustments in the
event of certain changes in the Corporation&#146;s capitalization. In addition, the
maximum number of shares of Common Stock purchasable in total by all
Participants on any one Purchase Date in any offering period beginning on or
after November&nbsp;1, 2002 shall not exceed One Million Two Hundred Thousand
(1,200,000) shares, subject to periodic adjustments in the event of certain
changes in the Corporation&#146;s capitalization. However, the Plan Administrator
shall have the discretionary authority, exercisable prior to the start of any
offering period under the Plan, to increase or decrease the limitations to be
in effect for the number of shares purchasable per Participant and in total by
all Participants on each Purchase Date during that offering period.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <B><U>Excess Payroll Deductions. </U></B>Any payroll deductions not applied to the
purchase of shares of Common Stock on any Purchase Date because they are not
sufficient to purchase a whole share of Common Stock shall be held for the
purchase of Common Stock on the next Purchase Date. However, any payroll
deductions not applied to the purchase of Common Stock by reason of the
limitation on the maximum number of shares purchasable per Participant or in
total by all Participants on such Purchase Date shall be promptly refunded.
</FONT>

<P align="center"><FONT size="2">5</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <B><U>Withdrawal from Plan/Termination of Purchase Right</U></B>: The following
provisions shall govern the withdrawal or the termination of outstanding
purchase rights:
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;A Participant may, at any time prior to the next
scheduled Purchase Date in the offering period, withdraw from the
Plan by filing the appropriate form with the Plan Administrator
(or its designate), and no further payroll deductions shall be
collected from the Participant with respect to the offering period
in which such withdrawal occurs. Any payroll deductions collected
during the Purchase Interval in which such withdrawal occurs
shall, at the Participant&#146;s election, be immediately refunded or
held for the purchase of shares on the next Purchase Date. If no
such election is made at the time such withdrawal, then the
payroll deductions collected with respect to the terminated right
shall be refunded as soon as possible.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;In order to resume participation in the Plan, such
individual must re-enroll in the Plan (by making a timely filing
of the prescribed enrollment forms) on or before any subsequently
scheduled Quarterly Entry Date.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Should the Participant cease to remain an Eligible
Employee for any reason (including death, disability or change in
status) while his or her purchase right remains outstanding, then
that purchase right shall immediately terminate, and all of the
Participant&#146;s payroll deductions for the Purchase Interval in
which the purchase right so terminates shall be immediately
refunded. However, should the Participant cease to remain in
active service by reason of an approved unpaid leave of absence,
then the Participant shall have the right, exercisable up until
the last business day of the Purchase Interval in which such leave
commences, to (a)&nbsp;withdraw all the payroll deductions collected to
date on his or her behalf for that Purchase Interval or (b)&nbsp;have
such funds held for the purchase of shares on his or her behalf on
the next scheduled Purchase Date. In no event, however, shall any
further payroll deductions be collected on the Participant&#146;s
behalf during such leave. Upon the Participant&#146;s return to active
service (i)&nbsp;within ninety (90)&nbsp;days following the commencement of
such leave or (ii)&nbsp;prior to the expiration of any longer period
for which such Participant&#146;s right to reemployment with the
Corporation is guaranteed by either statute or contract, his or
her payroll deductions under the Plan shall automatically resume
at the rate in effect at the time the leave began, unless the
Participant withdraws from the Plan prior to his or her return.
An individual who returns to active employment following a leave
of absence which exceeds in duration the applicable (i)&nbsp;or (ii)
time period shall be treated as a new Employee for purposes of
subsequent participation in the Plan and must accordingly
re-enroll in the Plan (by making a timely filing of the prescribed
enrollment forms) on or before his or her scheduled Entry Date
into the offering period.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">6</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.
<B><U>Change in Control. </U></B>Each outstanding purchase right shall automatically be
exercised, immediately prior to the effective date of any Change in Control, by
applying the payroll deductions of each Participant for the Purchase Interval
in which such Change in Control occurs to the purchase of whole shares of
Common Stock at a purchase price per share equal to eighty-five percent (85%)
of the lower of (i)&nbsp;the Fair Market Value per share of Common Stock on the
Participant&#146;s Entry Date into the offering period in which such Change in
Control occurs or (ii)&nbsp;the Fair Market Value per share of Common Stock
immediately prior to the effective date of such Change in Control. However,
the applicable limitation on the number of shares of Common Stock purchasable
per Participant shall continue to apply to any such purchase, but not the
limitation applicable to the maximum number of shares of Common Stock
purchasable in total by all Participants.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall use its best efforts to provide at least ten
(10)-days prior written notice of the occurrence of any Change in Control, and
Participants shall, following the receipt of such notice, have the right to
terminate their outstanding purchase rights prior to the effective date of the
Change in Control.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <B><U>Proration of Purchase Rights. </U></B>Should the total number of shares of
Common Stock to be purchased pursuant to outstanding purchase rights on any
particular date exceed the number of shares then available for issuance under
the Plan, the Plan Administrator shall make a pro-rata allocation of the
available shares on a uniform and nondiscriminatory basis, and the payroll
deductions of each Participant, to the extent in excess of the aggregate
purchase price payable for the Common Stock pro-rated to such individual, shall
be refunded.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <B><U>Assignability. </U></B>The purchase right shall be exercisable only by the
Participant and shall not be assignable or transferable by the Participant.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <B><U>Shareholder Rights. </U></B>A Participant shall have no shareholder rights
with respect to the shares subject to his or her outstanding purchase right
until the shares are purchased on the Participant&#146;s behalf in accordance with
the provisions of the Plan and the Participant has become a holder of record of
the purchased shares.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>VIII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCRUAL LIMITATIONS</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. No Participant shall be entitled to accrue rights to acquire Common
Stock pursuant to any purchase right outstanding under this Plan if and to the
extent such accrual, when aggregated with (i)&nbsp;rights to purchase Common Stock
accrued under any other purchase right granted under this Plan and (ii)&nbsp;similar
rights accrued under other employee stock purchase plans (within the meaning of
Code Section&nbsp;423) of the Corporation or any Corporate Affiliate, would
otherwise permit such Participant to purchase more than Twenty-Five Thousand
Dollars ($25,000) worth of stock of the Corporation or any Corporate Affiliate
(determined on the basis of the Fair Market Value per share on the date or
dates such rights are granted) for each calendar year such rights are at any
time outstanding.
</FONT>

<P align="center"><FONT size="2">7</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.
For purposes of applying such accrual limitations to the purchase rights
granted under the Plan, the following provisions shall be in effect:
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The right to acquire Common Stock under each outstanding
purchase right shall accrue in a series of installments on each
successive Purchase Date during the offering period on which such
right remains outstanding.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;No right to acquire Common Stock under any outstanding
purchase right shall accrue to the extent the Participant has
already accrued in the same calendar year the right to acquire
Common Stock under one (1)&nbsp;or more other purchase rights at a rate
equal to Twenty-Five Thousand Dollars ($25,000) worth of Common
Stock (determined on the basis of the Fair Market Value per share
on the date or dates of grant) for each calendar year such rights
were at any time outstanding.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If by reason of such accrual limitations, any purchase right of a
Participant does not accrue for a particular Purchase Interval, then the
payroll deductions which the Participant made during that Purchase Interval
with respect to such purchase right shall be promptly refunded.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. In the event there is any conflict between the provisions of this
Article and one or more provisions of the Plan or any instrument issued
thereunder, the provisions of this Article shall be controlling.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IX.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EFFECTIVE DATE AND TERM OF THE PLAN</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Plan was adopted by the Board on February&nbsp;3, 1998 and became
effective at the Effective Time. However, no purchase rights granted under the
Plan were exercised, and no shares of Common Stock were issued hereunder, until
(i)&nbsp;the Plan had been approved by the shareholders of the Corporation and (ii)
the Corporation had complied with all applicable requirements of the 1933 Act
(including the registration of the shares of Common Stock issuable under the
Plan on a Form&nbsp;S-8 registration statement filed with the Securities and
Exchange Commission), all applicable listing requirements of any stock exchange
(or the Nasdaq National Market, if applicable) on which the Common Stock is
listed for trading and all other applicable requirements established by law or
regulation.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Unless sooner terminated by the Board, the Plan shall terminate upon
the <U>earliest</U> of (i)&nbsp;the last business day in April 2008, (ii)&nbsp;the date on which
all shares available for issuance under the Plan shall have been sold pursuant
to purchase rights exercised under the Plan or (iii)&nbsp;the date on which all
purchase rights are exercised in connection with a Change in Control. No
further purchase rights shall be granted or exercised, and no further payroll
deductions shall be collected, under the Plan following such termination.
</FONT>

<P align="center"><FONT size="2">8</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>X.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMENDMENT/TERMINATION OF THE PLAN</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Board may alter, amend, suspend or terminate the Plan at any time
to become effective immediately following the close of any Purchase Interval.
However, the Plan may be amended or terminated immediately upon Board action,
if and to the extent necessary to assure that the Corporation will not
recognize, for financial reporting purposes, any compensation expense in
connection with the shares of Common Stock offered for purchase under the Plan,
should the financial accounting rules applicable to the Plan at the Effective
Time be subsequently revised so as to require the Corporation to recognize
compensation expense in the absence of such amendment or termination.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. In no event may the Board effect any of the following amendments or
revisions to the Plan without the approval of the Corporation&#146;s shareholders:
(i)&nbsp;increase the number of shares of Common Stock issuable under the Plan,
except for permissible adjustments in the event of certain changes in the
Corporation&#146;s capitalization, (ii)&nbsp;alter the purchase price formula so as to
reduce the purchase price payable for the shares of Common Stock purchasable
under the Plan or (iii)&nbsp;modify the eligibility requirements for participation
in the Plan.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. On March&nbsp;7, 2002, the Board amended the Plan to (i)&nbsp;increase the number
of shares of Common Stock authorized for issuance under the Plan by an
additional 3,000,000 shares and (ii)&nbsp;to implement an automatic share increase
feature pursuant to the provisions of Section&nbsp;III.B. The amendment was
approved by the shareholders at the 2002 Annual Meeting.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. On October&nbsp;31, 2002, the Board amended the Plan to increase the number
of shares of Common Stock purchasable in total by all Participants on each
Purchase Date within any offering period beginning on or after November&nbsp;1, 2002
from 600,000 to 1,200,000 shares.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. On March&nbsp;21, 2003, the Board amended the Plan to (i)&nbsp;revise the
automatic share increase provisions of Section&nbsp;III.B upward so that so that 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 remaining term of the Plan, beginning with calendar year 2004, by an
amount equal to one percent (1%) of the aggregate number of shares of Class&nbsp;A
Common Stock and Class&nbsp;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 3,000,000 shares, (ii)&nbsp;allow Participants who
withdraw from an offering period to rejoin the Plan on any subsequently
scheduled Quarterly Entry Date and, effective for all of offering periods
beginning on or after May&nbsp;1, 2003, (iii)&nbsp;remove the limitation on the number of
times a Participant may change his or her rate of payroll deduction during a
Purchase Interval.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>XI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GENERAL PROVISIONS</B>
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. All costs and expenses incurred in the administration of the Plan shall
be paid by the Corporation; however, each Plan Participant shall bear all costs
and expenses incurred by such individual in the sale or other disposition of
any shares purchased under the Plan.
</FONT>

<P align="center"><FONT size="2">9</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Nothing in the Plan shall confer upon the Participant any right to
continue in the employ of the Corporation or any Corporate Affiliate for any
period of specific duration or interfere with or otherwise restrict in any way
the rights of the Corporation (or any Corporate Affiliate employing such
person) or of the Participant, which rights are hereby expressly reserved by
each, to terminate such person&#146;s employment at any time for any reason, with
or without cause.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The provisions of the Plan shall be governed by the laws of the State
of California without resort to that State&#146;s conflict-of-laws rules.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Corporation and each Participating Corporation shall have the right
to take whatever steps the Plan Administrator deems necessary or appropriate to
comply with all applicable federal, state, local and employment tax withholding
requirements, and the Corporation&#146;s obligations to deliver shares under this
Plan shall be conditioned upon compliance with all such withholding tax
requirements. Without limiting the generality of the foregoing, the
Corporation and each Participating Corporation shall have the right to withhold
taxes from any other compensation or other amounts which it may owe to the
Participant, or to require the Participant to pay to the Corporation or the
Participating Corporation the amount of any taxes which the Corporation or the
Participating Corporation may be required to withhold with respect to such
shares. In this connection, the Plan Administrator may require the Participant
to notify the Plan Administrator, the Corporation or a Participating
Corporation before the Participant sells or otherwise disposes of any shares
acquired under the Plan.
</FONT>

<P align="center"><FONT size="2">10</FONT>
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<P align="center"><FONT size="2"><B><U>Schedule&nbsp;A</U></B>
</FONT>

<P align="center"><FONT size="2"><B>Corporations Participating in<BR>
Employee Stock Purchase Plan<BR><U>
As of March&nbsp;21, 2003</U></B>
</FONT>

<P align="center"><FONT size="2">Broadcom Corporation
</FONT>

<P align="center"><FONT size="2">Altima Communications, Inc.
</FONT>

<P align="center"><FONT size="2">AltoCom, Inc.
</FONT>

<P align="center"><FONT size="2">Broadcom Asia Distribution Pte. Ltd.
</FONT>

<P align="center"><FONT size="2">Broadcom Canada Ltd.
</FONT>

<P align="center"><FONT size="2">Broadcom HomeNetworking, Inc.
</FONT>

<P align="center"><FONT size="2">Broadcom Japan K.K.
</FONT>

<P align="center"><FONT size="2">Broadcom India Private Limited
</FONT>

<P align="center"><FONT size="2">Broadcom Israel Ltd.
</FONT>

<P align="center"><FONT size="2">Broadcom Netherlands B.V.
</FONT>

<P align="center"><FONT size="2">Broadcom Singapore Pte Ltd.
</FONT>

<P align="center"><FONT size="2">Broadcom Taiwan Corporation
</FONT>

<P align="center"><FONT size="2">Broadcom UK Ltd.
</FONT>

<P align="center"><FONT size="2">ServerWorks Corporation
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="center"><FONT size="2"><B><U>APPENDIX</U></B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following definitions shall be in effect under the Plan:
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.
<B><U>Board</U></B> shall mean the Corporation&#146;s Board of Directors.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.
<B><U>Cash Earnings</U></B> shall mean the (i)&nbsp;base salary payable to a Participant
by one or more Participating Companies during such individual&#146;s period of
participation in one or more offering periods under the Plan plus (ii)&nbsp;all
overtime payments, bonuses, commissions, current profit-sharing distributions
and other incentive-type payments received during such period. Such Cash
Earnings shall be calculated before deduction of (A)&nbsp;any income or employment
tax withholdings or (B)&nbsp;any pre-tax contributions made by the Participant to
any Code Section&nbsp;401(k) salary deferral plan or any Code Section&nbsp;125 cafeteria
benefit program now or hereafter established by the Corporation or any
Corporate Affiliate. However, Cash Earnings shall <B>not </B>include any
contributions (other than Code Section&nbsp;401(k) or Code Section&nbsp;125 contributions
deducted from such Cash Earnings) made by the Corporation or any Corporate
Affiliate on the Participant&#146;s behalf to any employee benefit or welfare plan
now or hereafter established.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.
<B><U>Change in Control</U></B> shall mean either of the following
shareholder-approved transactions to which the Corporation is a party:
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;a merger or consolidation in which securities possessing
more than fifty percent (50%) of the total combined voting power
of the Corporation&#146;s outstanding securities are transferred to a
person or persons different from the persons holding those
securities immediately prior to such transaction,</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the sale, transfer or other disposition of all or
substantially all of the assets of the Corporation in complete
liquidation or dissolution of the Corporation, or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;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&nbsp;13d-3 of the 1934 Act) of
securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation&#146;s outstanding securities
pursuant to a tender or exchange offer made directly to the
Corporation&#146;s shareholders.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.
<B><U>Code</U></B> shall mean the Internal Revenue Code of 1986, as amended.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.
<B><U>Common Stock</U></B> shall mean the Corporation&#146;s Class&nbsp;A common stock.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.
<B><U>Corporate Affiliate</U></B> shall mean any parent or subsidiary corporation of
the Corporation (as determined in accordance with Code Section&nbsp;424), whether
now existing or subsequently established.
</FONT>

<P align="center"><FONT size="2">A-1</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.
<B><U>Corporation</U></B> shall mean Broadcom Corporation, a California corporation,
and any corporate successor to all or substantially all of the assets or voting
stock of Broadcom Corporation which shall by appropriate action adopt the Plan.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.
<B><U>Effective Time</U></B> shall mean the time at which the Underwriting Agreement
was executed and the Common Stock priced for the initial public offering. Any
Corporate Affiliate which becomes a Participating Corporation after such
Effective Time shall designate a subsequent Effective Time with respect to its
employee-Participants.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.
<B><U>Eligible Employee</U></B> shall mean any person who is employed by a
Participating Corporation on a basis under which he or she is regularly
expected to render more than twenty (20)&nbsp;hours of service per week for more
than five (5)&nbsp;months per calendar year for earnings considered wages under Code
Section&nbsp;3401(a).
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.
<B><U>Entry Date</U></B> shall mean the date an Eligible Employee first commences
participation in the offering period in effect under the Plan. The earliest
Entry Date under the Plan shall be the Effective Time.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.
<B><U>Fair Market Value</U></B> per share of Common Stock on any relevant date shall
be determined in accordance with the following provisions:
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;If the Common Stock is at the time traded on the Nasdaq
National Market, then the Fair Market Value shall be the closing
selling price per share of Common Stock on the date in question,
as such price is reported by the National Association of
Securities Dealers on the Nasdaq National Market. 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.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If the Common Stock is at the time listed on any Stock
Exchange, then the Fair Market Value shall be the closing selling
price per share of Common Stock 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.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;For purposes of the initial offering period which began
at the Effective Time, the Fair Market Value shall be deemed to be
equal to the price per share at which the Common Stock was sold in
the initial public offering pursuant to the Underwriting
Agreement.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. <B><U>1933 Act </U></B>shall mean the Securities Act of 1933, as amended.
</FONT>

<P align="center"><FONT size="2">A-2</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M.
<B><U>Participant</U></B> shall mean any Eligible Employee of a Participating
Corporation who is actively participating in the Plan.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N.
<B><U>Participating Corporation</U></B> shall mean the Corporation and such Corporate
Affiliate or Affiliates as may be authorized from time to time by the Board to
extend the benefits of the Plan to their Eligible Employees. The Participating
Corporations in the Plan are listed in attached Schedule&nbsp;A.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O.
<B><U>Plan</U></B> shall mean the Corporation&#146;s 1998 Employee Stock Purchase Plan, as
set forth in this document.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P.
<B><U>Plan Administrator</U></B> shall mean the committee of two (2)&nbsp;or more Board
members appointed by the Board to administer the Plan.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q.
<B><U>Purchase Date</U></B> shall mean the last business day of each Purchase
Interval. The initial Purchase Date shall be October&nbsp;30, 1998.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R.
<B><U>Purchase Interval</U></B> shall mean each successive six (6)-month period
within the offering period at the end of which there shall be purchased shares
of Common Stock on behalf of each Participant.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S.
<B><U>Quarterly Entry Date</U></B> shall mean the first business day in February,
May, August and November each year on which an Eligible Employee may first
enter an offering period. The first such Quarterly Entry Date shall be August
2, 1999.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T.
<B><U>Stock Exchange</U></B> shall mean either the American Stock Exchange or the New
York Stock Exchange.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.
<B><U>Underwriting Agreement</U></B> shall mean the agreement between the Corporation
and the underwriter or underwriters managing the initial public offering of the
Common Stock.
</FONT>


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