Marvell Technology Group (MRVL)

    Annual Cash Incentive Awards

        During fiscal 2008, Dr. Sehat Sutardja, our Chief Executive Officer, and Dr. Pantas Sutardja, our Chief Technology Officer, did not receive cash bonuses or participate in any cash incentive plan. Instead, they received an additional stock option grant equal in value to the 50^th percentile of the target annual cash incentives for the primary peer group, as discussed in further detail below. The executive compensation committee believes that the grant of additional stock options to Dr. Sehat Sutardja and Dr. Pantas Sutardja further increases their focus on long-term shareholder value.

        Ms. Dai, our former Chief Operating Officer, and Mr. Hervey, our former Chief Financial Officer, did not qualify for nor did they receive any cash bonus before they transitioned out of their positions. Mr. Tate, one of our former interim Chief Financial Officers, did not receive any cash bonus for fiscal 2008, although the executive compensation committee did approve his cash bonus for fiscal 2007, the prior fiscal year, at its December 2007 meeting. Mr. Tate received a cash bonus of $33,750 for his

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performance as our Vice President, Corporate Controller and Corporate Treasurer based on the recommendation of Dr. Sehat Sutardja, who determined the amount in his judgment based on his evaluation of Mr. Tate's performance in fiscal 2007. At its December 2007 meeting, the executive compensation committee also approved a cash bonus for Mr. Rashkin, our other former interim Chief Financial Officer, for his performance in fiscal 2007, the prior fiscal year. Mr. Rashkin received a bonus of $92,324 for his fiscal 2007 performance based on the recommendation of Dr. Sehat Sutardja, who determined the amount in his judgment based on his evaluation of Mr. Rashkin's performance for fiscal 2007. The bonus was paid half in cash and half in a new fully vested stock option grant, with the number of option shares determined by dividing $46,162, half of the total bonus, by the fair market value of our common shares on the grant date and multiplying this quotient by four. The practice of splitting the bonus into a cash and stock option component and the calculation of the number of shares subject to the stock option is consistent with our bonus plan for our vice presidents and other nonexecutive officers. In March 2008, the executive compensation committee approved a bonus of $72,705 for Mr. Rashkin for his performance in fiscal 2008, based on the recommendation of Dr. Sehat Sutardja, who determined the amount in his judgment of Mr. Rashkin's performance. This bonus will be paid in accordance with the standard practice, as described above, of half in cash and half in a new stock option grant.

        Dr. Sehat Sutardja, our Chief Executive Officer, Dr. Pantas Sutardja, our Chief Technology Officer, and Ms. Dai, our former Chief Operating Officer, received cash payments under our patent issuance bonus plan through June 2007. Bonuses under the patent issuance plan are given to inventors and primary managers for their involvement in the patent process. In June 2007, the executive compensation committee ratified all prior payments made to our named executive officers under the patent issuance bonus plan and then suspended further participation by our named executive officers under the patent issuance bonus plan. For additional details of the patent issuance bonuses, please see footnote 2 to the Summary Compensation Table below.