Contract
Exhibit-10.17
SUPPLEMENT NO. 1 dated as of May 1, 2006, to the SECURITY
AGREEMENT dated as of December 1, 2005, among AVAGO TECHNOLOGIES WIRELESS
(U.S.A.) MANUFACTURING INC., a Delaware corporation (“U.S.
Wireless”), and AVAGO TECHNOLOGIES U.S. INC., a Delaware corporation
(“U.S. Opco” and together with U.S. Wireless, the “U.S.
Borrowers” and each a “U.S. Borrower”), each of the
Subsidiaries of the Company listed on the signature pages thereto (each
such Subsidiary individually, a “Subsidiary Grantor” and,
collectively, the “Subsidiary Grantors”; the Subsidiary Grantors
and the U.S. Borrowers are referred to collectively as the
“Grantors”) and CITICORP NORTH AMERICA, INC., as Collateral Agent
(in such capacity, the “Collateral Agent”) under the Credit
Agreement referred to below.
A. Reference is made to (a) the Credit Agreement dated as of December 1, 2005 (as the same may
be amended, restated, supplemented or otherwise modified, refinanced or replaced from time to time,
the “Credit Agreement”), among AVAGO TECHNOLOGIES FINANCE PTE. LTD. (company registration
number 200512223N), a Singapore limited company (the “Company” or the “Singaporean
Borrower”), a wholly-owned Subsidiary of AVAGO TECHNOLOGIES HOLDING PTE. LTD. (company
registration number 200512203H), a Singapore limited company (“Holdings”), a wholly-owned
Subsidiary of AVAGO TECHNOLOGIES LIMITED (company registration number 200510713C), a Singapore
limited company (“Avago” or “Parent”), AVAGO TECHNOLOGIES FINANCE S.À.X.X., a Grand
Duchy of Luxembourg limited liability company (the “Lux Borrower”), AVAGO TECHNOLOGIES
(MALAYSIA) SDN. BHD. (f/k/a Jumbo Portfolio Sdn. Bhd.) (Company No. 704181-P), a company
incorporated in Malaysia under the Companies Act, 1965 (the “Malaysian Borrower”), the U.S.
Borrowers (together with the Singaporean Borrower, the Lux Borrower and the Malaysian Borrower, the
“Borrowers and each, a “Borrower”), the lenders or other financial institutions or
entities from time to time parties thereto (the “Lenders”), CITICORP INTERNATIONAL LIMITED
(HONG KONG), as Asian Administrative Agent and CITICORP NORTH AMERICA, INC., as Tranche B Term Loan
Administrative Agent and as Collateral Agent and (b) the Guarantee dated as of December 1, 2005 (as
the same may be amended, restated, supplemented or otherwise modified, refinanced or replaced from
time to time, the “Guarantee”), among the Guarantors party thereto and the Collateral
Agent.
B. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Security Agreement.
C. The Grantors have entered into the Security Agreement in order to induce the Administrative
Agents, the Collateral Agent, the Syndication Agent, the Lenders and the Letter of Credit Issuer to
enter into the Credit Agreement and to induce the respective Lenders and the Letter of Credit
Issuer to make their respective Extensions
of Credit to the Borrowers under the Credit Agreement and to induce one or more Lenders or
affiliates of Lenders to enter into Hedge Agreements with the Borrowers.
D. Section 9.11 of the Credit Agreement and Section 8.13 of the Security Agreement provide
that each U.S. Subsidiary of the Borrower that is required to become a party to the Security
Agreement pursuant to Section 9.11 of the Credit Agreement shall become a Grantor, with the same
force and effect as if originally named as a Grantor therein, for all purposes of the Security
Agreement upon execution and delivery by such U.S. Subsidiary of an instrument in the form of this
Supplement. Each undersigned U.S. Subsidiary (each a “New Grantor”) is executing this
Supplement in accordance with the requirements of the Security Agreement to become a Subsidiary
Grantor under the Security Agreement in order to induce the Lenders and the Letter of Credit Issuer
to make additional Extensions of Credit and as consideration for Extensions of Credit previously
made.
Accordingly, the Collateral Agent and the New Grantors agree as follows:
SECTION 1. In accordance with subsection 8.13 of the Security Agreement, each New Grantor by
its signature below becomes a Grantor under the Security Agreement with the same force and effect
as if originally named therein as a Grantor and each New Grantor hereby (a) agrees to all the terms
and provisions of the Security Agreement applicable to it as a Grantor thereunder and (b)
represents and warrants that the representations and warranties made by it as a Grantor thereunder
are true and correct on and as of the date hereof. In furtherance of the foregoing, each New
Grantor, as security for the payment and performance in full of the Obligations, does hereby
bargain, sell, convey, assign, set over, mortgage, pledge, hypothecate and transfer to the
Collateral Agent, for the ratable benefit of the Secured Parties, and hereby grants to the
Collateral Agent, for the ratable benefit of the Secured Parties, a Security Interest in all of the
Collateral of such New Grantor, in each case whether now or hereafter existing or in which now has
or hereafter acquires an interest. Each reference to a “Grantor” in the Security Agreement shall
be deemed to include each New Grantor. The Security Agreement is hereby incorporated herein by
reference.
SECTION 2. Each New Grantor represents and warrants to the Collateral Agent and the other
Secured Parties that this Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in accordance with its
terms.
SECTION 3. This Supplement may be executed by one or more of the parties to this Supplement on
any number of separate counterparts (including by facsimile or other electronic transmission), and
all of said counterparts taken together shall be deemed to constitute one and the same instrument.
A set of the copies of this Supplement signed by all the parties shall be lodged with the
Collateral Agent and the Company. This Supplement shall become effective as to each New Grantor
when the Collateral Agent shall have received counterparts of this Supplement that, when taken
together, bear the signatures of such New Grantor and the Collateral Agent.
SECTION 4. Each New Grantor hereby represents and warrants that (a) set forth on Schedule I
attached hereto is a true and correct schedule of the location of any and all Collateral of such
New Grantor, (b) set forth under its signature hereto is (i) the legal name of such New Grantor,
(ii) the jurisdiction of incorporation or organization of such New Grantor, (iii) the true and
correct location of the chief executive office and principal place of business and any office in
which it maintains books or records relating to Collateral owned by it, (iv) the identity or type
of organization or corporate structure of such New Grantor and (v) the Federal Taxpayer
Identification Number and organizational number of such New Grantor and (c) as of each Closing Date
(i) Schedule II hereto sets forth, in proper form for filing with the United States Copyright
Office, all of each New Grantor’s Copyrights (and all applications therefor), (ii) Schedule III
hereto sets forth, in proper form for filing with the United States Patent and Trademark Office,
all of each New Grantor’s Patents (and all applications therefor), (iii) Schedule IV hereto sets
forth, in proper form for filing with the United States Patent and Trademark Office, all of each
New Grantor’s Trademarks (and all applications therefor).
SECTION 5. Except as expressly supplemented hereby, the Security Agreement shall remain in
full force and effect.
SECTION 6. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 7. Any provision of this Supplement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof and in the Security
Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.
SECTION 8. All notices, requests and demands pursuant hereto shall be made in accordance with
Section 13.2 of the Credit Agreement. All communications and notices hereunder to each New Grantor
shall be given to it in care of the Company at the Company’s address set forth in Section 13.2 of
the Credit Agreement.
SECTION 9. Each New Grantor agrees to reimburse the Collateral Agent for its respective
reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable
fees, other charges and disbursements of counsel for the Collateral Agent.
IN WITNESS WHEREOF, each New Grantor and the Collateral Agent have duly executed this
Supplement to the Security Agreement as of the day and year first above written.
AVAGO TECHNOLOGIES SENSOR (U.S.A.) INC. | ||||||
By: | /s/ Xxx Xxxxxxx | |||||
Name: Xxx Xxxxxxx | ||||||
Title: Director |
CITICORP NORTH AMERICA, INC., AS COLLATERAL AGENT | ||||||
By: | /s/ X. X. Xxxxx | |||||
Name: X. X. Xxxxx | ||||||
Title: Vice President |
Signature Page to Guarantee Supplement