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                                                                    EXHIBIT 10.2

                                                                       [5/13/03]

                      MINDSPEED TECHNOLOGIES, INC. WARRANT

                                                                 [       ], 2003

THE WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF SUCH ACT AND SUCH LAWS.

                          MINDSPEED TECHNOLOGIES, INC.

                          COMMON STOCK PURCHASE WARRANT

                           Void after [       ], 2013

      MINDSPEED TECHNOLOGIES, INC. (the "COMPANY"), a Delaware corporation,
hereby certifies that for value received, CONEXANT SYSTEMS, INC., a Delaware
corporation, or its successors or assigns (the "HOLDER"), is entitled to
purchase, subject to the terms and conditions hereinafter set forth, at any time
beginning on the first anniversary of the date hereof and prior to 5:00 P.M.,
California time, on [ ], 2013 (the "EXPIRATION DATE"), [ ] fully paid and
nonassessable shares of Common Stock (as hereinafter defined) at an exercise
price per share equal to the Exercise Price (as hereinafter defined), subject to
adjustment pursuant to Section 4 of this Warrant.

      This Warrant is issued pursuant to the Distribution Agreement (the
"DISTRIBUTION AGREEMENT"), dated as of the date hereof, between the Company and
the Holder, and is subject to the terms thereof. Capitalized terms used herein
and not otherwise defined shall have the respective meanings assigned to such
terms in the Distribution Agreement. The Holder is entitled to the rights and
subject to the obligations contained in the Distribution Agreement and the
Registration Rights Agreement relating to this Warrant and the shares of Common
Stock issuable upon exercise of this Warrant.

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      1.    DEFINITIONS. For the purposes of this Warrant, the following terms
shall have the meanings indicated:

            "AMEX" means the American Stock Exchange.

            "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or
other day when banks are authorized or required by law to be closed in
California or New York.

            "CAPITAL REORGANIZATION" shall have the meaning ascribed to such
term in Section 7 of this Warrant.

            "CHANGE OF CONTROL" shall have the meaning ascribed to that term in
the Bylaws of the Company.

            "CLOSING PRICE" shall mean, with respect to each share of Common
Stock for any day, (a) the last reported sale price regular way or, in case no
such sale takes place on such day, the average of the closing bid and asked
prices regular way, in either case as reported on the principal national
securities exchange on which the Common Stock is listed or admitted for trading
or (b) if the Common Stock is not listed or admitted for trading on any national
securities exchange, the last reported sale price or, in case no such sale takes
place on such day, the average of the highest reported bid and the lowest
reported asked quotation for the Common Stock, in either case as reported on
NASDAQ or a similar service if NASDAQ is no longer reporting such information.

            "COMMON STOCK" means the common stock, par value $0.01 per share, of
the Company, together with the associated preferred share purchase rights, any
class of stock resulting from successive changes or reclassification of such
Common Stock and any and all other shares of capital stock of the Company
without preference with respect to liquidity distributions and entitled to
unlimited liquidation rights.

            "COMPANY" shall have the meaning ascribed to such term in the first
paragraph of this Warrant.

            "CURRENT MARKET PRICE PER SHARE" shall be determined in accordance
with Section 3(f) of this Warrant.

            "DETERMINATION DATE" shall have the meaning ascribed to such term in
Section 3(d) of this Warrant.

            "DISTRIBUTION AGREEMENT" shall have the meaning ascribed to such
term in the second paragraph of this Warrant.

            "ELECTION TO PURCHASE SHARES" shall have the meaning ascribed to
such term in Section 2(a) of this Warrant.

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            "EXERCISE DATE" shall have the meaning ascribed to such term in
Section 2(d) of this Warrant.

            "EXERCISE PERIOD" shall mean the period beginning on the first
anniversary of the date hereof and ending on the Expiration Date.

            "EXERCISE PRICE" shall mean the average of the daily volume weighted
average price per share of the Common Stock for the ten consecutive Trading Days
immediately following the Distribution Date, subject to adjustment pursuant to
Section 3 of this Warrant.

            "EXPIRATION DATE" shall have the meaning ascribed to such term in
the first paragraph of this Warrant.

            "HOLDER" shall have the meaning ascribed to such term in the first
paragraph of this Warrant.

            "NASDAQ" shall mean the Automatic Quotation System of the National
Association of Securities Dealers, Inc.

            "OFFICER'S CERTIFICATE" shall mean a certificate signed by the Chief
Executive Officer, any Vice President, the Treasurer or the Secretary of the
Company.

            "PERSON" shall mean any individual, firm, corporation, limited
liability company, partnership, trust, incorporated or unincorporated
association, joint venture, joint stock company, government (or an agency or
political subdivision thereof) or other entity of any kind, and shall include
any successor (by merger or otherwise) of such entity.

            "PURCHASE PRICE" shall have the meaning ascribed to such term in
Section 2(a) of this Warrant.

            "PURCHASED SHARES" shall have the meaning ascribed to such term in
Section 3(e) of this Warrant.

            "REGISTRATION RIGHTS AGREEMENT" shall mean the Registration Rights
Agreement, dated as of the date hereof, between the Company and the Holder, as
the same may be amended and supplemented from time to time, relating to this
Warrant and the Warrant Shares.

            "SECURITIES ACT" has the meaning ascribed to such term in Section
8(a) of this Warrant.

            "SUBSIDIARY" shall mean, with respect to any Person, a corporation
or other entity of which 50% or more of the voting power of the voting equity
securities or equity interests is owned, directly or indirectly, by such Person.

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            "TENDER EXPIRATION DATE" shall have the meaning ascribed to such
term in Section 3(e) of this Warrant.

            "TENDER EXPIRATION TIME" shall have the meaning ascribed to such
term in Section 3(d) of this Warrant.

            "TRADING DAY" shall mean, with respect to any security, each Monday,
Tuesday, Wednesday, Thursday and Friday, other than any day on which securities
are not generally traded on the principal exchange or market in which such
security is traded.

            "TRIGGERING DISTRIBUTION" shall have the meaning ascribed to such
term in Section 3(d) of this Warrant.

            "WARRANT" shall mean this Warrant and any subsequent Warrant issued
pursuant to the terms of this Warrant.

            "WARRANT REGISTER" shall have the meaning ascribed to such term in
Section 13(c) of this Warrant.

            "WARRANT SHARES" shall mean the shares of Common Stock issuable upon
exercise of this Warrant pursuant to Section 2(a) of this Warrant.

      2.    EXERCISE OF WARRANT.

                  (a)   Exercise. This Warrant may be exercised, at any time and
from time to time during the Exercise Period (in whole or in part), by
surrendering to the Company at its principal office, this Warrant with an
Election to Purchase Shares (the "ELECTION TO PURCHASE SHARES") in the form
attached hereto as Exhibit A duly executed by the Holder and accompanied by
payment equal to the Exercise Price multiplied by the number of Warrant Shares
for which this Warrant is being exercised at such time (the "PURCHASE PRICE").
Notwithstanding anything contained herein, the Holder may not exercise this
Warrant to the extent that such exercise would result in the Holder owning at
any one time more than 10% of the then outstanding shares of Common Stock.

                  (b)   Delivery of Shares; Payment of Purchase Price. As soon
as practicable after surrender of this Warrant and receipt of the Purchase
Price, the Company shall promptly issue and deliver to the Holder a certificate
or certificates for the number of Warrant Shares for which this Warrant is being
exercised, in such name or names as may be designated by such Holder, along with
a check for the amount of cash to be paid in lieu of issuance of fractional
shares, if any. Payment of the Purchase Price may be made as follows (or by any
combination of the following): (i) in United States currency by cash or delivery
of a certified check, wire transfer, bank draft or postal or express money order
payable to the order of the Company, or (ii) by surrender of a number of shares
of Common Stock held by the Holder equal to the quotient obtained by dividing
(A) the Purchase Price by (B) the Closing Price on the Exercise Date.

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                  (c)   Alternative Cashless Exercise. Notwithstanding any
provision herein to the contrary, in lieu of exercising this Warrant as set
forth above, if the Closing Price on the Exercise Date exceeds the Exercise
Price, the Holder may exercise this Warrant by electing to receive that number
of Warrant Shares as determined below by surrendering to the Company at its
principal office, this Warrant with the applicable Election to Purchase Shares
duly executed by the Holder and marked to reflect the cashless exercise of this
Warrant, in which event the Company shall issue to the Holder the number of
shares of Common Stock computed using the following formula:

                               CS = WCS x (MP-EP)
                                    -------------
                                       MP

where:

      CS    equals the number of the Warrant Shares to be issued to the Holder

      WCS   equals the number of Warrant Shares to be purchased as set forth in
            the applicable Election to Purchase Shares

      MP    equals the Closing Price on the Exercise Date

      EP    equals the Exercise Price

Following the surrender of this Warrant pursuant to this Subsection 2(c), the
Company shall promptly issue and deliver to the Holder a certificate or
certificates for that number of Warrant Shares to be issued to the Holder as
calculated above, in such name or names as may be designated by such Holder.

                  (d)   When Exercise Effective. The exercise of this Warrant
shall be deemed to have been effective immediately prior to the close of
business on the Business Day on which this Warrant is exercised in accordance
with the provisions of this Section 2 (the "EXERCISE DATE") and the Person in
whose name any certificate for shares of Common Stock shall be issuable upon
such exercise, as provided in Subsection 2(b), shall be deemed to be the record
holder of such shares of Common Stock for all purposes on the Exercise Date.

                  (e)   Warrant Shares Fully Paid, Nonassessable. The Company
shall take all actions necessary to ensure that following exercise of this
Warrant in accordance with the provisions of this Section 2, the Warrant Shares
issued hereunder shall, without further action by the Holder, be fully paid and
nonassessable.

                  (f)   Continued Validity. A holder of shares of Common Stock
issued upon the exercise of this Warrant, in whole or in part, shall continue to
be entitled to all of the rights and subject to all of the obligations set forth
in Section 13.

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                  (g)   Exercise in Part. In connection with any exercise of
this Warrant for less than all remaining Warrant Shares, the Company shall, at
the time of the delivery of the stock certificate or certificates relating to
any such exercise, deliver to the Holder a new Warrant evidencing the right to
purchase the remaining Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical to this Warrant.

      3.    ADJUSTMENT OF EXERCISE PRICE. The Exercise Price and the number of
shares subject to this Warrant shall be adjusted from time to time upon the
occurrence of the following events:

                  (a)   Common Stock Distributions, etc. In case the Company
shall (i) pay a dividend or make a distribution on its Common Stock in shares of
Common Stock, (ii) subdivide its outstanding Common Stock into a greater number
of shares or (iii) combine its outstanding Common Stock into a smaller number of
shares, the Exercise Price in effect immediately prior thereto shall be adjusted
so that the price shall equal the price determined by multiplying the Exercise
Price in effect immediately prior to such event by a fraction, of which (x) the
numerator shall be the number of shares of Common Stock outstanding immediately
prior to such event and (y) the denominator shall be the number of shares of
Common Stock outstanding immediately after such event. An adjustment made
pursuant to this subsection (a) shall become effective immediately after the
record date in the case of a dividend or distribution and shall become effective
immediately after the effective date in the case of subdivision or combination.

                  (b)   Rights or Warrants Issuances. In case the Company shall
issue rights or warrants to all or substantially all holders of its Common Stock
entitling them (for a period commencing no earlier than the record date
described below and expiring not more than 60 days after such record date) to
subscribe for or purchase shares of Common Stock (or securities convertible into
Common Stock) at a price per share (or having an initial conversion price per
share) less than the Current Market Price Per Share on the record date for the
determination of stockholders entitled to receive such rights or warrants, the
Exercise Price in effect immediately prior thereto shall be adjusted so that the
same shall equal the price determined by multiplying the Exercise Price in
effect immediately prior to such record date by a fraction of which (x) the
numerator shall be the number of shares of Common Stock outstanding on such
record date plus the number of shares of Common Stock that the aggregate
offering price of the total number of shares of Common Stock so offered (or the
aggregate initial conversion price of the convertible securities so offered,
which shall be determined by multiplying the number of shares of Common Stock
issuable upon exercise of such convertible securities by the initial conversion
price per share of Common Stock pursuant to the terms of such convertible
securities) would purchase at the Current Market Price Per Share on such record
date, and (y) the denominator shall be the number of shares of Common Stock
outstanding on such record date plus the number of additional shares of Common
Stock offered (or into which the convertible securities so offered are
convertible). Such adjustment shall be made successively whenever any such
rights or warrants are issued, and shall become effective immediately after such
record date. If at the end of the period during which such rights or warrants
are exercisable not all rights or warrants shall have been exercised, the
adjusted Exercise Price shall be immediately readjusted to what it would

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have been based upon the number of additional shares of Common Stock actually
issued (or the number of shares of Common Stock issuable upon exercise of
convertible securities actually issued).

                  (c)   Distributions Other Than Common Stock or Cash. In case
the Company shall distribute to all or substantially all holders of Common Stock
any shares of capital stock of the Company (other than Common Stock), evidences
of indebtedness or other non-cash assets (including securities of any person
other than the Company but excluding (1) dividends or distributions paid in cash
or (2) dividends or distributions referred to in subsection (a) of this Section
3), or shall distribute to all or substantially all holders of Common Stock
rights or warrants to subscribe for or purchase any of its securities (excluding
those rights and warrants referred to in subsection (b) of this Section 3 and
also excluding the distribution of rights to all holders of Common Stock
pursuant to the adoption of a stockholders rights plan or the detachment of such
rights under the terms of such stockholder rights plan), then in each such case
the Exercise Price shall be adjusted so that the same shall equal the price
determined by multiplying the current Exercise Price by a fraction, of which (x)
the numerator shall be the Current Market Price Per Share on the record date
mentioned below less the fair market value on such record date (as reasonably
determined in good faith by the Board of Directors of the Company, whose
determination shall be conclusive evidence of such fair market value and which
shall be evidenced by an Officer's Certificate delivered to the Holder) of the
portion of the capital stock, evidences of indebtedness or other non-cash assets
so distributed or of such rights or warrants applicable to one share of Common
Stock (determined on the basis of the number of shares of Common Stock
outstanding on the record date), and (y) the denominator shall be the Current
Market Price Per Share on such record date. Such adjustment shall be made
successively whenever any such distribution is made and shall become effective
immediately after the record date for the determination of shareholders entitled
to receive such distribution.

                  (d)   Cash Distributions. In case the Company shall, by
dividend or otherwise, at any time distribute (a "TRIGGERING DISTRIBUTION") to
all or substantially all holders of its Common Stock cash in an aggregate amount
that, together with the aggregate amount of (i) any cash and the fair market
value (as reasonably determined in good faith by the Board of Directors of the
Company, whose determination shall be conclusive evidence thereof and which
shall be evidenced by an Officer's Certificate delivered to the Holder) of any
other consideration payable in respect of any tender offer by the Company or a
Subsidiary of the Company for Common Stock consummated within the 12 months
preceding the date of payment of the Triggering Distribution and in respect of
which no Exercise Price adjustment pursuant to this Section 3 has been made and
(ii) all other cash distributions to all or substantially all holders of its
Common Stock made within the 12 months preceding the date of payment of the
Triggering Distribution and in respect of which no Exercise Price adjustment
pursuant to this Section 3 has been made, exceeds an amount equal to 10% of the
product of the Current Market Price Per Share on the Business Day (the
"DETERMINATION DATE") immediately preceding the day on which such Triggering
Distribution is declared by the Company, multiplied by the number of shares of
Common Stock outstanding on the Determination Date (excluding shares held in the
treasury of the Company),

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the Exercise Price shall be reduced so that the same shall equal the price
determined by multiplying such Exercise Price in effect immediately prior to the
Determination Date by a fraction, of which (x) the numerator shall be the
Current Market Price Per Share on the Determination Date less the sum of the
aggregate amount of cash and the aggregate fair market value (as reasonably
determined in good faith by the Board of Directors of the Company, whose
determination shall be conclusive evidence of such fair market value and which
shall be evidenced by an Officer's Certificate delivered to the Holder) of any
such other consideration so distributed, paid or payable within such 12 months
(including, without limitation, the Triggering Distribution) applicable to one
share of Common Stock (determined on the basis of the number of shares of Common
Stock outstanding on the Determination Date) and (y) the denominator shall be
such Current Market Price Per Share on the Determination Date, such adjustment
to become effective immediately prior to the opening of business on the day
following the date on which the Triggering Distribution is paid.

                  (e)   Tender Offers. (1) In case any tender offer made by the
Company for Common Stock shall expire and such tender offer (as amended upon the
expiration thereof) shall involve the payment of aggregate consideration in an
amount (determined as the sum of the aggregate amount of cash consideration and
the aggregate fair market value (as reasonably determined in good faith by the
Board of Directors of the Company, whose determination shall be conclusive
evidence thereof and which shall be evidenced by an Officer's Certificate
delivered to the Holder) of any other consideration) that, together with the
aggregate amount of (i) any cash and the fair market value (as reasonably
determined in good faith by the Board of Directors of the Company, whose
determination shall be conclusive evidence thereof and which shall be evidenced
by an Officer's Certificate delivered to the Holder) of any other consideration
payable in respect of any other tender offers by the Company or any Subsidiary
of the Company for Common Stock consummated within the 12 months preceding the
date of the Tender Expiration Date (as defined below) and in respect of which no
Exercise Price adjustment pursuant to this Section 3 has been made and (ii) all
cash distributions to all or substantially all holders of its Common Stock made
within the 12 months preceding the Tender Expiration Date and in respect of
which no Exercise Price adjustment pursuant to this Section 3 has been made,
exceeds an amount equal to 10% of the product of the Current Market Price Per
Share as of the last date (the "TENDER EXPIRATION DATE") tenders could have been
made pursuant to such tender offer (as it may be amended) (the last time at
which such tenders could have been made on the Tender Expiration Date is
hereinafter sometimes called the "TENDER EXPIRATION TIME") multiplied by the
number of shares of Common Stock outstanding (including tendered shares but
excluding any shares held in the treasury of the Company) at the Tender
Expiration Time, then, immediately prior to the opening of business on the day
after the Tender Expiration Date, the Exercise Price shall be reduced so that
the same shall equal the price determined by multiplying the Exercise Price in
effect immediately prior to the close of business on the Tender Expiration Date
by a fraction, of which (x) the numerator shall be the product of the number of
shares of Common Stock outstanding (including tendered shares but excluding any
shares held in the treasury of the Company) at the Tender Expiration Time
multiplied by the Current Market Price Per Share on the Trading Day next
succeeding the Tender Expiration Date and (y) the denominator shall be the sum
of (A) the aggregate

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consideration (determined as aforesaid) payable to stockholders based on the
acceptance (up to any maximum specified in the terms of the tender offer) of all
shares validly tendered and not withdrawn as of the Tender Expiration Time (the
shares deemed so accepted, up to any such maximum, being referred to as the
"PURCHASED SHARES") and (B) the product of the number of shares of Common Stock
outstanding (less any Purchased Shares and excluding any shares held in the
treasury of the Company) at the Tender Expiration Time and the Current Market
Price Per Share on the Trading Day next succeeding the Tender Expiration Date,
such adjustment to become effective immediately prior to the opening of business
on the day following the Tender Expiration Date. In the event that the Company
is obligated to purchase shares pursuant to any such tender offer, but the
Company is permanently prevented by applicable law from effecting any or all
such purchases or any or all such purchases are rescinded, the Exercise Price
shall again be adjusted to be the Exercise Price which would have been in effect
based upon the number of shares actually purchased. If the application of this
Subsection 3(e) to any tender offer would result in an increase in the Exercise
Price, no adjustment shall be made for such tender offer under this Subsection
3(e).

                        (2)   For purposes of Subsections 3(d) and 3(e), the
term "tender offer" shall mean and include both tender offers and exchange
offers (within the meaning of United States federal securities laws), all
references to purchases of shares in tender offers (and all similar references)
shall mean and include both the purchase of shares in tender offers and the
acquisition of shares pursuant to exchange offers, and all references to
tendered shares (and all similar references) shall mean and include shares
tendered in both tender offers and exchange offers.

                  (f)   Current Market Price Per Share. For the purpose of any
computation under subsections (b), (c), (d) and (e) of this Section 3, the
current market price per share of Common Stock (the "CURRENT MARKET PRICE PER
SHARE") on any date shall be deemed to be the average of the daily Closing
Prices for the 30 consecutive Trading Days commencing 45 Trading Days before (i)
the Determination Date or the Tender Expiration Date, as the case may be, with
respect to distributions or tender offers under subsection (d) or (e) of this
Section 3 or (ii) the record date with respect to distributions, issuances or
other events requiring such computation under subsection (b) or (c) of this
Section 3.

                  (g)   Deferral of Issuance. In any case in which this Section
3 shall require that an adjustment be made following a record date or a
Determination Date or Tender Expiration Date, as the case may be, established
for purposes of this Section 3, the Company may elect to defer (but only until
five Business Days following the filing by the Company with the Holder of the
certificate described in Section 5) issuing to the Holder of any Warrant
exercised after such record date or Determination Date or Tender Expiration Date
the shares of Common Stock and other capital stock of the Company issuable upon
such exercise over and above the shares of Common Stock and other capital stock
of the Company issuable upon such exercise only on the basis of the Exercise
Price prior to adjustment; and, in lieu of the shares the issuance of which is
so deferred, the Company shall issue or cause its transfer agent to issue due
bills or other appropriate evidence prepared by the Company of the right to
receive such shares. If any distribution in respect of

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which an adjustment to the Exercise Price is required to be made as of the
record date or Determination Date or Tender Expiration Date therefor is not
thereafter made or paid by the Company for any reason, the Exercise Price shall
be readjusted to the Exercise Price which would then be in effect if such record
date had not been fixed or such effective date or Determination Date or Tender
Expiration Date had not occurred.

                  (h)   No Adjustment. No adjustment in the Exercise Price shall
be required unless the adjustment would require an increase or decrease of at
least 1% in the Exercise Price as last adjusted; provided, however, that any
adjustments which by reason of this Section 3(h) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Section 3 shall be made to the nearest cent or to
the nearest one-hundredth of a share, as the case may be.

                        No adjustment need be made for issuances of Common Stock
pursuant to a Company plan for reinvestment of dividends or interest or for a
change in the par value or a change to no par value of the Common Stock.

                  (i)   Adjustment for Tax Purposes. The Company shall be
entitled to make such reductions in the Exercise Price, in addition to those
required by Section 3, as it in its discretion shall determine to be advisable
in order that any stock dividends, subdivisions of shares, distributions of
rights to purchase stock or securities or distributions of securities
convertible into or exchangeable for stock hereafter made by the Company to its
stockholders shall not be taxable.

      4.    ADJUSTMENT OF NUMBER OF SHARES PURCHASABLE. Upon any adjustment of
the Exercise Price as provided in Section 3, the number of shares subject to
this Warrant shall be adjusted so that the Holder shall thereafter be entitled
to purchase, at the Exercise Price resulting from such adjustment, the number of
shares of Common Stock (calculated to the nearest 1/100th of a share) obtained
by multiplying the Exercise Price in effect immediately prior to such adjustment
by the number of Warrant Shares purchasable hereunder immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

      5.    NOTICE OF ADJUSTMENT. Whenever the Exercise Price, exercise
privilege or number of Warrant Shares issuable upon an exercise of this Warrant
shall be adjusted pursuant to the terms hereof, the Company shall promptly mail
to the Holder a notice of the adjustment (in accordance with Section 17) and an
Officer's Certificate briefly stating the facts requiring the adjustment and the
manner of computing it. Unless and until the Holder shall receive an Officer's
Certificate setting forth an adjustment of the Exercise Price or the number of
Warrant Shares issuable upon an exercise of this Warrant, the Holder may assume
without inquiry that the Exercise Price and the number of Warrant Shares
issuable upon an exercise of this Warrant have not been adjusted and that the
last Exercise Price and number of Warrant Shares issuable upon an exercise of
this Warrant of which it has knowledge remain in effect.

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      6.    NOTICE OF CERTAIN TRANSACTIONS. In the event that:

                  (a)   the Company takes any action which would require an
            adjustment in the Exercise Price or the number of Warrant Shares
            issuable upon an exercise of this Warrant;

                  (b)   the Company consolidates or merges with or into, or
            transfers all or substantially all of its property and assets to,
            another corporation or another corporation merges into the Company
            and, in each such case, stockholders of the Company must approve the
            transaction; or

                  (c)   there is a dissolution or liquidation of the Company;

the Company shall mail to the Holder a notice in accordance with Section 17
stating the proposed record or effective date, as the case may be. The Company
shall mail the notice at least ten days before such date. Failure to mail such
notice or any defect therein shall not affect the validity of any transaction
referred to in subsections (a), (b) or (c) of this Section 6.

      7.    EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON
EXERCISE PRIVILEGE. If any of the following shall occur, namely: (a) any
reclassification or change of shares of Common Stock issuable upon exercise of
the Warrants (other than a change in par value, or from par value to no par
value, or from no par value to par value, or as a result of a subdivision or
combination, or any other change for which an adjustment is provided in Section
3); (b) any consolidation or merger or combination to which the Company is a
party other than a merger in which the Company is the continuing corporation and
which does not result in any reclassification of, or change (other than in par
value, or from par value to no par value, or from no par value to par value, or
as a result of a subdivision or combination) in, outstanding shares of Common
Stock; or (c) any sale, conveyance, transfer or lease of all or substantially
all of the property and assets of the Company, directly or indirectly, to any
Person (any such event being called a "CAPITAL REORGANIZATION"), upon the
effective date of such Capital Reorganization, the Holder shall have the right
to purchase, upon exercise of this Warrant, the kind and amount of shares of
stock and other securities and property (including cash) which the Holder would
have owned or have been entitled to receive after such Capital Reorganization if
this Warrant had been exercised immediately prior to such Capital
Reorganization, assuming the Holder (i) is not a person with which the Company
consolidated or into which the Company merged or which merged into the Company
or to which such sale or conveyance was made, as the case may be ("constituent
person"), or an affiliate of a constituent person and (ii) failed to exercise
his rights of election, if any, as to the kind or amount of securities, cash or
other property receivable upon such Capital Reorganization. The provisions of
this Section 7 shall similarly apply to successive Capital Reorganizations.

      8.    REPRESENTATIONS AND WARRANTIES OF HOLDER. In connection with the
issuance of this Warrant, and the Warrant Shares upon the exercise of this
Warrant, the Holder hereby makes the following representations and warranties to
the Company, effective as of the date hereof and upon each exercise of this
Warrant in whole or in part:

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                  (a)   the Holder is an "accredited investor" as such term is
defined in Regulation D under the Securities Act of 1933, as amended (the
"SECURITIES ACT");

                  (b)   the Holder is acquiring the Warrant or the Warrant
Shares, as applicable, for the Holder's own account for investment and not with
a view to, or for sale in connection with, any distribution thereof in violation
of the Securities Act, nor with any present intention of distributing or selling
the same in violation of the Securities Act;

                  (c)   the Holder understands that the Warrant and the Warrant
Shares have not been registered under the Securities Act, in reliance upon
exemptions contained in the Securities Act and applicable regulations
promulgated thereunder or interpretations thereof, and cannot be offered for
sale, sold or otherwise transferred unless such sale or transfer is so
registered or qualifies for exemption from registration under the Securities
Act, and that the certificates representing such shares may bear a legend
substantially in the form set forth in Section 9 hereof; and

                  (d)   the Holder further understands that it may be required
to hold the Warrant and the Warrant Shares for an indefinite period of time
unless the Warrant and the Warrant Shares are subsequently registered under the
Securities Act or unless an exemption from registration is otherwise available.

      9.    LEGEND.

                  (a)   The Holder agrees not to make any disposition of all or
any part of the Warrant or Warrant Shares except in accordance with Section 13
hereof and unless and until:

                        (i)   The Holder shall be entitled to rely on an
exemption from registration under the Securities Act for such disposition; or

                        (ii)  There is then in effect a registration statement
under the Securities Act covering such proposed disposition and such disposition
is made in accordance with said registration statement.

                  (b)   The Holder understands and agrees that all certificates
evidencing Warrant Shares may bear the following legend:

THE WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF SUCH ACT AND SUCH LAWS.

                                       12
<PAGE>
Such legend shall be removed by the Company at the request of the Holder in
connection with any sale which the Company reasonably determines to be pursuant
to an effective registration statement under the Securities Act or pursuant to a
valid exemption from the registration requirements of the Securities Act.

      10.   FRACTIONAL SHARES. Notwithstanding an adjustment of this Warrant to
the contrary, the Company shall not be required to issue fractions of shares
upon exercise of this Warrant or to distribute certificates which evidence
fractional shares. In lieu of fractional shares, the Company may make payment to
the Holder, at the time of exercise of this Warrant as herein provided, of an
amount in cash equal to such fraction multiplied by the Closing Price on the
Exercise Date.

      11.   NO DILUTION OR IMPAIRMENT. The Company will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder of this Warrant against
dilution or other impairment. Without limiting the generality of the foregoing,
the Company (a) will not increase the par value of any shares of stock
receivable on the exercise of this Warrant above the amount payable therefor on
such exercise, (b) will at all times reserve and keep available the maximum
number of its authorized shares of Common Stock, free from all preemptive rights
therein, which will be sufficient to permit the full exercise of this Warrant,
and (c) will take all such action as may be necessary or appropriate in order
that all Warrant Shares will, upon issuance, be duly and validly issued, fully
paid and nonassessable, and free from all taxes, liens and charges with respect
to the issue thereof.

      12.   REPLACEMENT OF WARRANTS. On receipt by the Company of an affidavit
of an authorized representative of the Holder stating the circumstances of the
loss, theft, destruction or mutilation of this Warrant (and in the case of any
such mutilation, on surrender and cancellation of such Warrant), the Company at
its expense will promptly execute and deliver, in lieu thereof, a new Warrant of
like tenor which shall be exercisable for a like number of Warrant Shares. If
required by the Company, such Holder must provide an indemnity bond or other
indemnity sufficient in the judgment of the Company to protect the Company from
any loss which it may suffer if a lost, stolen or destroyed Warrant is replaced.

      13.   RESTRICTIONS ON TRANSFER.

            (a)   Subject to the provisions of this Section 13, this Warrant may
be transferred or assigned, in whole or in part, by the Holder at any time and
from time to time. The term "HOLDER" as used herein shall also include any
transferee of this Warrant whose name has been recorded by the Company in the
Warrant Register (as hereinafter defined). Each transferee of the Warrant or the
Common Stock issuable upon the exercise of the Warrant acknowledges that neither
the Warrant nor the Common Stock issuable upon the exercise of the Warrant has
been

                                       13
<PAGE>
registered under the Securities Act and may be transferred only pursuant to an
effective registration under the Securities Act or pursuant to an applicable
exemption from the registration requirements of the Securities Act.

            (b)   With respect to a transfer that should occur prior to the time
that the Warrant or the Common Stock issuable upon the exercise thereof is
registered under the Securities Act, such Holder shall request an opinion of
counsel (which shall be rendered by counsel reasonably acceptable to the
Company) that the proposed transfer may be effected without registration or
qualification under any Federal or state securities or blue sky law. Counsel
shall, as promptly as practicable, notify the Company and the Holder of such
opinion and of the terms and conditions, if any, to be observed in such
transfer, whereupon the Holder shall be entitled to transfer this Warrant or
such shares of Common Stock (or portion thereof), subject to any other
provisions and limitations of this Warrant. In the event this Warrant shall be
exercised as an incident to such transfer, such exercise shall relate back and
for all purposes of this Warrant be deemed to have occurred as of the date of
such notice regardless of delays incurred by reason of the provisions of this
Section 13 which may result in the actual exercise on any later date.

            (c)   The Company shall maintain a register (the "WARRANT REGISTER")
in its principal office for the purpose of registering the Warrant and any
transfer thereof, which register shall reflect and identify, at all times, the
ownership of any interest in the Warrant. Upon the issuance of this Warrant, the
Company shall record the name of the initial holder of this Warrant in the
Warrant Register as the first Holder. Upon surrender for registration of
transfer or exchange of this Warrant together with a properly executed
Assignment in the form attached hereto as Exhibit B at the principal office of
the Company, the Company shall, at its expense, execute and deliver one or more
new Warrants of like tenor which shall be exercisable in the aggregate for the
total number of Warrant Shares, registered in the name of the Holder or a
transferee or transferees.

            This Warrant may be transferred or assigned, in whole or in part, by
the Holder at any time without the consent of the Company.

      14.   NO RIGHTS OR LIABILITY AS A STOCKHOLDER. This Warrant does not
entitle the Holder hereof to any voting rights or other rights as a stockholder
of the Company. No provisions hereof, in the absence of affirmative action by
the Holder hereof to purchase Common Stock, and no enumeration herein of the
rights or privileges of the Holder shall give rise to any liability of such
Holder as a stockholder of the Company.

      15.   CHARGES, TAXES AND EXPENSES. Issuance of certificates for shares of
Common Stock upon the exercise of this Warrant shall be made without charge to
the Holder hereof for any issue or transfer tax, or other incidental expense, in
respect of the issuance or delivery of such certificates or the securities
represented thereby, all of which taxes and expenses shall be paid by the
Company.

                                       14
<PAGE>
      16.   AMENDMENT OR WAIVER. This Warrant and any term hereof may be
amended, waived, discharged or terminated only by and with the written consent
of the Company and the Holder.

      17.   NOTICES. All notices, requests, claims, demands and other
communications required or permitted to be given hereunder will be in writing
and will be delivered by hand or telecopied, e-mailed or sent, postage prepaid,
by registered, certified or express mail or reputable overnight courier service
and will be deemed given when so delivered by hand or telecopied, when e-mail
confirmation is received if delivered by e-mail, or three Business Days after
being so mailed (one Business Day in the case of express mail or overnight
courier service). All such notices, requests, claims, demands and other
communications will be addressed as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such
notice:

            (a)   If to Conexant:

                  Conexant Systems, Inc.
                  4311 Jamboree Road
                  Newport Beach, California  92660-3095

                  Attention:    Dwight W. Decker
                                Chairman of the Board and Chief Executive
                                 Officer
                  Telecopy:     (949) 483-4318
                  E-mail:       dwight.decker@conexant.com

                  with a copy to:

                  Conexant Systems, Inc.
                  4311 Jamboree Road
                  Newport Beach, California  92660-3095

                  Attention:    Dennis E. O'Reilly, Esq.
                                Senior Vice President, General Counsel
                                  and Secretary
                  Telecopy:     (949) 483-9475
                  E-mail:       dennis.o'reilly@conexant.com

                                       15
<PAGE>
            (b)   If to the Company:

                  Mindspeed Technologies, Inc.
                  4000 MacArthur Boulevard
                  Newport Beach, California 92660-3095

                  Attention:    Raouf Y. Halim
                                Chief Executive Officer
                  Telecopy:     (949) 579-6106
                  E-mail:       raouf.halim@mindspeed.com

                  with a copy to:

                  Mindspeed Technologies, Inc.
                  4000 MacArthur Boulevard
                  Newport Beach, California 92660-3095

                  Attention:       [Name]
                                   [Title]
                  Telecopy:
                  E-mail:

      18.   CERTAIN REMEDIES. The Holder shall be entitled to an injunction or
injunctions to prevent breaches of the provisions of this Warrant and to enforce
specifically the terms and provisions of this Warrant in any court of the United
States or any state thereof having jurisdiction, this being in addition to any
other remedy to which such Holder may be entitled at law or in equity.

      19.   GOVERNING LAW. This agreement shall be governed by, construed in
accordance with, and enforced under, the law of the State of Delaware applicable
to agreements or instruments entered into and performed entirely within such
State.

      20.   HEADINGS. The headings in this Warrant are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       16
<PAGE>
                           [SIGNATURE PAGE TO WARRANT]

            IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its duly authorized officer effective as of [ ], 2003.

                                          MINDSPEED TECHNOLOGIES, INC.

                                          By:  _______________________________
                                               Name:
                                               Title:

ACKNOWLEDGED AND ACCEPTED:

CONEXANT SYSTEMS, INC.

By:  _______________________________
     Name:
     Title:

                                       17
<PAGE>
                                                             Exhibit A to Common
                                                          Stock Purchase Warrant

                                    [FORM OF]

                           ELECTION TO PURCHASE SHARES

            The undersigned hereby irrevocably elects to exercise the Warrant to
purchase _____ shares of Common Stock, par value $0.01 per share ("Common
Stock"), of MINDSPEED TECHNOLOGIES, INC. (the "Company") and hereby [makes
payment of $_______ therefor] [or] [makes payment therefore by surrendering
pursuant to Section 2(b)(ii) of the Warrant _____ shares of Common Stock of the
Company] [or] [makes payment therefor by cancellation pursuant to Section 2(c)
of the Warrant of a portion of the Warrant with respect to _________ shares of
Common Stock]. The undersigned hereby requests that certificates for such shares
be issued and delivered as follows:

ISSUE TO:
________________________________________________________________________________

                                     (NAME)

________________________________________________________________________________

                          (ADDRESS, INCLUDING ZIP CODE)

________________________________________________________________________________

                  (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:
________________________________________________________________________________

                                     (NAME)

________________________________________________________________________________

                          (ADDRESS, INCLUDING ZIP CODE)

                                       18
<PAGE>
                                                             Exhibit B to Common
                                                          Stock Purchase Warrant

                              [FORM OF] ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers unto the Assignee named below all of the rights of the undersigned to
purchase Common Stock, par value $0.01 per share ("Common Stock"), of MINDSPEED
TECHNOLOGIES, INC. represented by the Warrant, with respect to the number of
shares of Common Stock set forth below:

<TABLE>
<CAPTION>
Name of Assignee        Address                 No. of Shares
----------------        -------                 -------------
<S>                     <C>                     <C>

</TABLE>

and does hereby irrevocably constitute and appoint ____________________________
Attorney to make such transfer on the books of MINDSPEED TECHNOLOGIES, INC.
maintained for that purpose, with full power of substitution in the premises.

Dated: ____________________________         CONEXANT SYSTEMS, INC.

                                            By:
                                                ________________________________
                                                Name:
                                                Title:<PAGE>

                                                                    Exhibit 10.3

                                                                       [5/13/03]

                                    FORM OF

                          MINDSPEED TECHNOLOGIES, INC.

                         2003 LONG-TERM INCENTIVES PLAN

      SECTION 1: PURPOSE

      The purpose of the Mindspeed Technologies, Inc. 2003 Long-Term Incentives
Plan (the "Plan") is to provide incentive compensation to officers, executives
and other employees, and prospective employees, contractors and consultants of
the Company and its Subsidiaries; to attract and retain individuals of
outstanding ability; and to align the interests of such persons with the
interests of the Company's shareholders.

      SECTION 2: DEFINITIONS

      The following terms, as used herein, shall have the meaning specified:

      "Award" means an award granted pursuant to Section 4.

      "Award Agreement" means a letter to a Participant, together with the terms
and conditions applicable to an Award granted to the Participant, issued by the
Company, as described in Section 6.

      "Board of Directors" means the Board of Directors of the Company as it may
be comprised from time to time.

      "Code" means the Internal Revenue Code of 1986, and any successor statute,
as it or they may be amended from time to time.

      "Committee" means the Compensation and Management Development Committee of
the Board of Directors as it may be comprised from time to time or another
committee of the Board of Directors designated by the Board of Directors to
administer the Plan.

      "Company" means Mindspeed Technologies, Inc., a Delaware corporation, and
any successor corporation.

      "Conexant" means Conexant Systems, Inc., a Delaware corporation, and any
successor corporation.

      "Employee" means, subject to the exclusions set forth below, an individual
who was hired (and advised that he or she was being hired) directly by the
Company or a Subsidiary as a regular employee and who at the time of grant of an
Award performs regular employment services directly for the Company or a
Subsidiary, but shall not include (a) members of the Board of Directors who are
not also employees of the Company or a Subsidiary or (b) any individuals who
work, or who were hired to work, or who were advised that they work: (i) as
independent contractors or employees of independent contractors; (ii) as
temporary employees, regardless of
<PAGE>
the length of time that they work at the Company or a Subsidiary; (iii) through
a temporary employment agency, job placement agency, or other third party; or
(iv) as part of an employee leasing arrangement between the Company or a
Subsidiary and any third party. For the purposes of the Plan, the exclusions
described above shall remain in effect even if the described individual could
otherwise be construed as an employee under any applicable common law.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

      "Exchange Act" means the Securities Exchange Act of 1934, and any
successor statute, as it may be amended from time to time.

      "Executive Officer" means an Employee who is an executive officer of the
Company as defined in Rule 3b-7 under the Exchange Act (or any successor
provision).

      "Fair Market Value" means the closing sale price of the Stock as reported
on the American Stock Exchange or such other national securities exchange or
automated inter-dealer quotation system on which the Stock has been duly listed
and approved for quotation and trading on the relevant date, or if no sale of
the Stock is reported for such date, the next preceding day for which there is a
reported sale.

      "Incentive Stock Option" means an option to purchase Stock that is granted
pursuant to Section 4(b) or pursuant to any other plan of the Company or a
Subsidiary that complies with Code Section 422.

      "Mindspeed Distribution Date" means the date on which Conexant completes
the pro rata distribution of all outstanding Stock to Conexant shareowners.

      "Non-Employee" means an individual who at the time of grant of an Award
(a) has been extended an offer of employment with the Company or a Subsidiary
but who has not yet accepted the offer and become an Employee, or (b) performs
consulting, contracting or other services for the Company or a Subsidiary other
than in a capacity as an Employee or who has been extended an offer to perform
consulting, contracting or other services for the Company or a Subsidiary, but
shall not include members of the Board of Directors.

      "Non-Qualified Stock Option" shall have the meaning set forth in Section
4(a).

      "Participant" means any Employee or Non-Employee who has been granted an
Award pursuant to the Plan.

      "Restricted Stock" shall have the meaning set forth in Section 4(c).

      "SARs" shall have the meaning set forth in Section 4(e).

      "Stock" means shares of common stock, par value $.01 per share, of the
Company, or any security of the Company issued in substitution, exchange or lieu
thereof.

                                     - 2 -
<PAGE>
      "Subsidiary" means any corporation or other entity in which the Company,
directly or indirectly, controls 50% or more of the total combined voting power
of such corporation or other entity.

      "Ten-Percent Shareholder" means any person who owns, directly or
indirectly, on the relevant date, securities having ten percent (10%) or more of
the combined voting power of all classes of the Company's securities or of its
parent or subsidiaries. For purposes of applying the foregoing ten percent (10%)
limitation, the rules of Code Section 424(d) shall apply.

      "Unrestricted Stock" shall have the meaning set forth in Section 4(d).

      SECTION 3: ELIGIBILITY

      Persons eligible for Awards shall consist of Employees and Non-Employees
whose performance or potential contribution, in the judgment of the Committee,
will benefit the future success of the Company and/or a Subsidiary.
Notwithstanding the foregoing, only Employees will be eligible for Awards of
Incentive Stock Options, Restricted Stock and/or Unrestricted Stock under the
Plan and only Employees who are foreign nationals or employed outside the United
States will be eligible for Awards of SARs under the Plan.

      SECTION 4: AWARDS

      The Committee may grant any of the following types of Awards, either
singly, in tandem or in combination with other types of Awards, as the Committee
may in its sole discretion determine:

      a. Non-Qualified Stock Options. A "Non-Qualified Stock Option" is an Award
to an Employee or Non-Employee in the form of an option to purchase a specific
number of shares of Stock exercisable at such time or times, and during such
specified time not to exceed ten (10) years, as the Committee may determine, at
a price not less than 100% of the Fair Market Value of the Stock on the date the
option is granted.

            (i) The purchase price of the Stock subject to the option may be
      paid in cash. At the discretion of the Committee, the purchase price may
      also be paid by the tender of Stock (the value of such Stock shall be its
      Fair Market Value on the date of exercise), or through a combination of
      Stock and cash, or through such other means as the Committee determines
      are consistent with the Plan's purpose and applicable law. No fractional
      shares of Stock will be issued or accepted.

            (ii) Without limiting the foregoing, the Committee may permit
      Participants, either on a selective or aggregate basis, to simultaneously
      exercise options and sell the shares of Stock thereby acquired, pursuant
      to a brokerage or similar arrangement approved in advance by the
      Committee, and use the proceeds from such sale as payment of the purchase
      price of such Stock and any applicable withholding taxes.

      b. Incentive Stock Options. An Incentive Stock Option is an Award to an
Employee in the form of an option to purchase a specified number of shares of
Stock that complies with the

                                     - 3 -
<PAGE>
requirements of Code Section 422, which option shall, subject to the following
provisions, be exercisable at such time or times, and during such specified
time, as the Committee may determine.

            (i) The aggregate Fair Market Value (determined at the time of the
      grant of the Award) of the shares of Stock subject to Incentive Stock
      Options which are exercisable by one person for the first time during a
      particular calendar year shall not exceed $100,000.

            (ii) No Incentive Stock Option may be granted under the Plan after
      [          ], 2013.

            (iii) No Incentive Stock Option may be exercisable more than:

                  (A) in the case of an Employee who is not a Ten-Percent
            Shareholder on the date the option is granted, ten (10) years after
            the date the option is granted, and

                  (B) in the case of an Employee who is a Ten-Percent
            Shareholder on the date the option is granted, five (5) years after
            the date the option is granted.

            (iv) The exercise price of any Incentive Stock Option shall not be
      less than:

                  (A) in the case of an Employee who is not a Ten-Percent
            Shareholder on the date the option is granted, the Fair Market Value
            of the Stock subject to the option on such date; and

                  (B) in the case of an Employee who is a Ten-Percent
            Shareholder on the date the option is granted, 110% of the Fair
            Market Value of the Stock subject to the option on such date.

            (v) The Committee may provide that the exercise price of an
      Incentive Stock Option may be paid by one or more of the methods available
      for paying the exercise price of a Non-Qualified Stock Option.

      c. Restricted Stock. Restricted Stock is an Award of Stock that is issued
to an Employee subject to restrictions on transfer and such other restrictions
on incidents of ownership as the Committee may determine. Subject to such
restrictions, a Participant as owner of shares of Restricted Stock shall have
the rights of a holder of shares of Stock, except that the Committee may provide
at the time of the Award that any dividends or other distributions paid on the
Restricted Stock while subject to such restrictions shall be accumulated or
reinvested in Stock and held subject to the same restrictions as the Restricted
Stock and such other terms and conditions as the Committee shall determine.
Shares of Restricted Stock shall be registered in the name of the Participant
and, at the Company's sole discretion, (i) shall be held in book-entry form
subject to the Company's instructions until the restrictions relating thereto
lapse, or (ii) shall be evidenced by a certificate, which shall bear an
appropriate restrictive legend, shall be subject to appropriate stop-transfer
orders and shall be held in custody by the Company until the

                                     - 4 -

<PAGE>
restrictions relating thereto lapse, and the Participant shall deliver to the
Company a stock power endorsed in blank relating to the Restricted Stock.

      d. Unrestricted Stock. Unrestricted Stock is an Award of Stock that is
issued to an Employee without any restrictions, as the Committee in its sole
discretion shall determine. A Participant shall not be required to make any
payment for Unrestricted Stock. Upon receipt of shares of Unrestricted Stock,
the Participant as owner of such shares shall have the rights of a holder of
shares of Stock, including the right to vote the Unrestricted Stock and to
receive dividends and distributions thereon.

      e. Stock Appreciation Rights (SARs). A SAR is the right to receive a
payment measured by the increase in the Fair Market Value of a specified number
of shares of Stock from the date of grant of the SAR to the date on which the
Employee exercises the SAR. The payment to which the Employee is entitled on
exercise of a SAR may be in cash, in Stock valued at Fair Market Value on the
date of exercise or partly in cash and partly in Stock, as the Committee may
determine.

      SECTION 5: SHARES OF STOCK AVAILABLE UNDER PLAN

      a. Subject to adjustment as set forth in Section 9, the maximum number of
shares of Stock that may be delivered pursuant to the Plan shall be 10,000,000
(ten million). Subject to the maximum number of shares available under the Plan,
no more than 6,500,000 (six million five hundred thousand) shares shall be
available for Awards of Restricted Stock, no more than 6,500,000 (six million
five hundred thousand) shares shall be available for Awards of Unrestricted
Stock and SARs shall be granted with respect to no more than 50,000 (fifty
thousand) shares of Stock. No single Participant shall receive, in any one
calendar year, Awards which, over any three-year period, exceed a per-year
average of (i) options (whether Non-Qualified Stock Options or Incentive Stock
Options) with respect to 900,000 (nine hundred thousand) shares of Stock, (ii)
250,000 (two hundred fifty thousand) shares of Restricted Stock or (iii) 250,000
(two hundred fifty thousand) shares of Unrestricted Stock, in each case subject
to adjustment as set forth in Section 9.

      b. Shares of Stock with respect to the unexercised, undistributed or
unearned portion of any terminated or forfeited Award shall be available for
further Awards in addition to the shares of Stock available under Section 5(a).
Additional rules for determining the number of shares of Stock granted under the
Plan may be adopted by the Committee, as it deems necessary and appropriate.

      c. The Stock that may be delivered pursuant to an Award under the Plan may
be treasury or authorized but unissued Stock, or Stock may be acquired,
subsequently or in anticipation of the transaction, in the open market to
satisfy the requirements of the Plan.

      SECTION 6: AWARD AGREEMENTS.

      Each Award under the Plan shall be evidenced by an Award Agreement. Each
Award Agreement shall set forth the number of shares of Stock subject to the
Award and shall include the terms set forth below and such other terms and
conditions applicable to the Award, as

                                     - 5 -
<PAGE>
determined by the Committee, not inconsistent with the terms of the Plan.
Notwithstanding the foregoing, the provisions of subsection (b) below may be
modified to the extent deemed advisable by the Committee in Award Agreements
pertaining to Non-Employees providing consulting, contracting or other services
to the Company or a Subsidiary. In the event of any conflict between an Award
Agreement and the Plan, the terms of the Plan shall govern.

      a. Assignability. A provision setting forth the conditions pursuant to
which an Award may be assigned or transferred.

      b. Termination of Employment.

            (i) A provision describing the treatment of an Award in the event of
      the Retirement, Disability, death or other termination of a Participant's
      employment with the Company or a Subsidiary, including, but not limited
      to, the definitions of Retirement and Disability and terms relating to the
      vesting, time for exercise, forfeiture or cancellation of an Award in such
      circumstances. Participants who terminate employment due to Retirement,
      Disability or death prior to the satisfaction of applicable conditions and
      restrictions associated with their Awards may be entitled to prorated
      Awards as and to the extent determined by the Committee.

            (ii) A provision describing the treatment of an Award in the event
      of (A) a transfer of an Employee from the Company to a Subsidiary or an
      affiliate of the Company, whether or not incorporated, or vice versa, or
      from one Subsidiary or affiliate of the Company to another or (B) a leave
      of absence, duly authorized in writing by the Company.

            (iii) A provision stating that in the event the Participant's
      employment is terminated for Cause (as defined in the Award Agreement),
      anything else in the Plan or Award Agreement to the contrary
      notwithstanding, all Awards granted to the Participant shall immediately
      terminate and be forfeited.

      c. Rights as a Shareholder. A provision stating that a Participant shall
have no rights as a shareholder with respect to any Stock covered by an Award
until the date the Participant becomes the holder of record thereof. Except as
provided in Section 9, no adjustment shall be made for dividends or other
rights, unless the Award Agreement specifically requires such adjustment.

      d. Withholding. A provision requiring the withholding of applicable taxes
required by law from all amounts paid in satisfaction of an Award. A Participant
may satisfy the withholding obligation by paying the amount of any taxes in cash
or, with the approval of the Committee, shares of Stock may be delivered to the
Company or deducted from the payment or, in accordance with Section 4(a)(ii),
sold to satisfy the obligation in full or in part. If such tax withholding
obligation is paid in shares of Stock, tax amounts shall be limited to the
statutory minimum as required by law.

      e. Treatment of Options. Each Award of an option shall state whether it
will or will not be treated as an Incentive Stock Option.

                                     - 6 -
<PAGE>
      f. Performance Conditions. The Committee may condition, or provide for the
acceleration of, the exercisability or vesting of any Award upon such
prerequisites as it, in its sole discretion, deems appropriate, including, but
not limited to, achievement of specific objectives, whether absolute or relative
to a peer group or index designated by the Committee, with respect to one or
more measures of the performance of the Company and/or one or more Subsidiaries,
including, but not limited to, earnings per share, revenue, net income (whether
before or after extraordinary items), net operating income, earnings before
interest, taxes, depreciation and amortization (EBITDA), stock price and total
shareholder return. Such performance objectives shall be determined in
accordance with the Company's audited financial statements, to the extent
applicable, and so that a third party having knowledge of the relevant facts
could determine whether such performance objectives are met.

      SECTION 7: AMENDMENT AND TERMINATION

      The Board of Directors may at any time amend, suspend or discontinue the
Plan, in whole or in part, provided, however, that no such action shall be
effective without the approval of the shareholders of the Company to the extent
that such approval is necessary to comply with any tax or regulatory requirement
applicable to the Plan; and provided, further, that subject to Section 9, no
such action shall impair the rights of any holder of an Award without the
holder's consent. The Committee may at any time alter or amend any or all Awards
and Award Agreements under the Plan to the extent permitted by law, except that,
subject to the provisions of Section 9, no such alteration or amendment shall
impair the rights of any holder of an Award without the holder's consent.
Notwithstanding the foregoing, no such action may, without approval of the
shareholders of the Company, increase the number of shares of Stock with respect
to which Awards may be granted or reduce the exercise price of any Option or SAR
below Fair Market Value on the date of grant.

SECTION 8:  ADMINISTRATION

      a. The Plan and all Awards shall be administered by the Committee. The
members of the Committee shall be designated by the Board of Directors from
among its members who are not eligible for Awards under the Plan.

      b. Any member of the Committee who, at the time of any proposed grant of
one or more Awards, is not both an "outside director" as defined for purposes of
Code Section 162(m) and a "Non-Employee Director" as defined in Rule
16b-3(b)(3)(i) under the Exchange Act (or any successor provision) shall abstain
from and take no part in the Committee's action on the proposed grant.

      c. The Committee and others to whom the Committee has delegated such
duties shall keep a record of all their proceedings and actions and shall
maintain all such books of account, records and other data as shall be necessary
for the proper administration of the Plan.

      d. The Company shall pay all reasonable expenses of administering the
Plan, including, but not limited to, the payment of professional fees.

                                     - 7 -
<PAGE>
      e. The Committee may appoint such accountants, counsel and other experts
as it deems necessary or desirable in connection with the administration of the
Plan. Subject to the express provisions of the Plan, the Committee may delegate
to the officers or employees of the Company and its Subsidiaries the authority
to execute and deliver such instruments and documents, to do all such acts and
things, and to take all such other steps deemed necessary, advisable or
convenient for the effective administration of the Plan in accordance with its
terms and purpose.

      f. The Committee may adopt such procedures and sub-plans as are necessary
or appropriate to permit participation in the Plan by employees who are foreign
nationals or employed outside the U.S. Without limiting the foregoing, the
Committee may authorize supplementary plans applicable to Employees subject to
the tax laws of one or more countries other than the United States in order to
provide for the grant of Non-Qualified Stock Options, Restricted Stock,
Unrestricted Stock or SARs to such Employees on terms and conditions, consistent
with the Plan, determined by the Committee which may differ from the terms and
conditions of other Awards in those forms pursuant to the Plan for the purpose
of complying with the conditions for qualification of Awards for favorable
treatment under foreign tax laws.

      g. Subject to the express provisions of the Plan, the Committee shall have
the power (i) to implement (including the power to delegate such implementation
to appropriate officers of the Company), interpret and construe the Plan and
Awards and Award Agreements or other documents defining the rights and
obligations of the Company and Participants hereunder and thereunder, (ii) to
determine all questions arising hereunder and thereunder, and (iii) to adopt and
amend such rules and regulations for the administration hereof and thereof as it
may deem desirable. The interpretation and construction by the Committee of any
provisions of the Plan or of any Award or Award Agreement shall be conclusive
and binding. Any action taken by, or inaction of, the Committee relating to the
Plan or any Award or Award Agreement shall be within the discretion of the
Committee and shall be conclusive and binding upon all persons. Subject only to
compliance with the express provisions hereof, the Committee may act in its
discretion in matters related to the Plan and any and all Awards and Award
Agreements. The Committee's determinations under the Plan need not be uniform
and may be made by it selectively among Employees and Non-Employees who receive,
or who are eligible to receive, Awards under the Plan, whether or not such
persons are similarly situated.

      h. It is the intent of the Company that the Plan and Awards hereunder
satisfy, and be interpreted in a manner that satisfy, in the case of
Participants who are or may be Executive Officers, the applicable requirements
of Rule 16b-3 under the Exchange Act, so that such persons will be entitled to
the benefits of Rule 16b-3, or other exemptive rules under Section 16 of the
Exchange Act, and will not be subjected to avoidable liability under Section
16(b) of the Exchange Act.

      i. The Committee may delegate, and revoke the delegation of, all or any
portion of its authority and powers under the Plan to the Chief Executive
Officer of the Company, except that the Committee may not delegate any
discretionary authority with respect to substantive decisions or functions
regarding the Plan or Awards to the extent (i) related to Awards granted to

                                     - 8 -
<PAGE>
Executive Officers, (ii) inconsistent with the intent expressed in Section 8(h)
or (iii) prohibited by applicable law.

      SECTION 9: ADJUSTMENT PROVISIONS

      a. In the event of any change in or affecting the outstanding shares of
Stock by reason of a stock dividend or split, recapitalization,
reclassification, merger or consolidation (whether or not the Company is a
surviving corporation), reorganization, combination or exchange of shares or
other similar corporate changes or an extraordinary dividend in cash, securities
or other property, the Board of Directors shall make or take such amendments to
the Plan and outstanding Awards and Award Agreements and such adjustments and
actions hereunder and thereunder as it deems appropriate, in its sole
discretion, under the circumstances, and its determination in that respect shall
be final and binding. Such amendments, adjustments and actions may include, but
are not limited to, changes in the number of shares of Stock (or other
securities) then remaining subject to the Plan, and the maximum number of shares
that may be delivered to any single Participant pursuant to the Plan, including
those that are then covered by outstanding Awards, or accelerating the vesting
of outstanding Awards. No fractional interests will be issued under the Plan
resulting from any adjustments.

      b. The Committee shall make any further adjustments as it deems necessary
to ensure equitable treatment of any holder of an Award as the result of any
transaction affecting the securities subject to the Plan not described in (a),
or as is required or authorized under the terms of any applicable Award
Agreement.

      c. The existence of the Plan and the Awards granted hereunder shall not
affect or restrict in any way the right or power of the Board of Directors or
the shareholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in its capital structure or its
business, any merger or consolidation of the Company, any issue of bonds,
debentures, preferred or prior preference stock or other securities ahead of or
affecting the Stock or the rights thereof, the dissolution or liquidation of the
Company or any sale or transfer of all or any part of its assets or business, or
any other corporate act or proceeding.

      SECTION 10: MISCELLANEOUS

      a. Other Payments or Awards. Nothing contained in the Plan shall be deemed
in any way to limit or restrict the Company or a Subsidiary from making any
award or payment to any person under any other plan, arrangement or
understanding, whether now existing or hereafter in effect.

      b. Payments to Other Persons. If payments are legally required to be made
to any person other than the person to whom any amount is made available under
the Plan, payments shall be made accordingly. Any such payment shall be a
complete discharge of the liability hereunder.

      c. Unfunded Plan. The Plan shall be unfunded. No provision of the Plan or
any Award or Award Agreement shall require the Company or a Subsidiary, for the
purpose of satisfying any obligations under the Plan, to purchase assets or
place any assets in a trust or other

                                     - 9 -
<PAGE>
entity to which contributions are made or otherwise to segregate any assets, nor
shall the Company or a Subsidiary maintain separate bank accounts, books,
records or other evidence of the existence of a segregated or separately
maintained or administered fund for such purposes. Participants shall have no
rights under the Plan other than as unsecured general creditors of the Company
or a Subsidiary, except that insofar as they may have become entitled to payment
of additional compensation by performance of services, they shall have the same
rights as other employees or consultants, as applicable, under generally
applicable law.

      d. Limits of Liability. Any liability of the Company or a Subsidiary to
any Participant with respect to an Award shall be based solely upon contractual
obligations created by the Plan and the Award Agreement. Neither the Company or
its Subsidiaries, nor any member of the Board of Directors or of the Committee,
nor any other person participating in any determination of any question under
the Plan, or in the interpretation, administration or application of the Plan,
shall have any liability to any party for any action taken, or not taken, in
good faith under the Plan.

      e. Rights of Employees and Non-Employees. Status as an eligible Employee
or Non-Employee shall not be construed as a commitment that any Award shall be
made under the Plan to such eligible Employee or Non-Employee or to eligible
Employees or Non-Employees generally. Nothing contained in the Plan or in any
Award Agreement shall confer upon any Employee or Non-Employee any right to
continue in the employ or other service of or, in the case of prospective
employees, contractors or consultants, become employed by or render service to
the Company or a Subsidiary or constitute any contract or limit in any way the
right of the Company or a Subsidiary to change such person's compensation or
other benefits or, in the case of prospective employees, contractors or
consultants, prospective compensation or benefits or to terminate the employment
or other service or, in the case of prospective employees, contractors or
consultants, withdraw an offer of employment or offer to retain such person with
or without cause.

      f. Section Headings. The section headings contained herein are for the
purpose of convenience only, and in the event of any conflict, the text of the
Plan, rather than the section headings, shall control.

      g. Gender, Etc. In interpreting the Plan, the masculine gender shall
include the feminine, the neuter gender shall include the masculine or feminine,
and the singular shall include the plural unless the context clearly indicates
otherwise.

      h. Invalidity. If any term or provision contained herein or in any Award
Agreement shall to any extent be invalid or unenforceable, such term or
provision, to the extent practicable, will be reformed so that it is valid and
as consistent as possible with the original provisions hereof, and such
invalidity or unenforceability shall not affect any other provision or part
thereof.

      i. Applicable Law. The Plan, the Award Agreements and all actions taken
hereunder or thereunder shall be governed by, and construed in accordance with,
the laws of the State of Delaware without regard to the conflict of law
principles thereof.

                                     - 10 -
<PAGE>
      j. Compliance with Laws. Notwithstanding anything contained herein or in
any Award Agreement to the contrary, the Company shall not be required to sell
or deliver shares of Stock or other securities hereunder or thereunder if the
sale or delivery thereof would constitute a violation by the Participant or the
Company of any provisions of any law or regulation of any governmental authority
or any national securities exchange or interdealer quotation system, and as a
condition of any sale or delivery the Company may require such agreements or
undertakings, if any, as the Company may deem necessary or advisable in its
discretion to assure compliance with any such law or regulation.

      k. Effective Date and Term. The Plan was adopted by the Board of Directors
of the Company and shall be submitted to the sole shareholder of the Company,
and if approved, shall be effective as of the Mindspeed Distribution Date. The
Plan shall also be submitted to the shareholders of the Company for approval at
an Annual Meeting of Shareholders of the Company to be held in 2004 or 2005, and
no Award may be granted under the Plan after the date of that meeting unless
such shareholder approval is obtained. If such shareholder approval is not
obtained, the rights of any holder of an outstanding Award shall continue in
force and effect after termination of the Plan, except as they may lapse or be
terminated pursuant to the terms of the Plan or by their own terms and
conditions. The Plan shall remain in effect until all Awards granted under the
Plan have been exercised or terminated under the terms of the Plan and
applicable Award Agreements, provided that Awards under the Plan may only be
granted within ten (10) years from the effective date of the Plan.

      l. Awards for Compensation Purposes Only. The Plan is not intended to
constitute an "employee benefit plan" within the meaning of Section 3(3) of
ERISA.

                                     - 11 -

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