Document:

Ex-10.6(c) Third Amendment

EXHIBIT 10.6(c)

     THIRD AMENDMENT TO EMPLOYMENT AGREEMENT dated as of May 22, 2008, between AMERICAN COLOR
GRAPHICS, INC., a New York corporation (“ACG”), and KATHLEEN A. DEKAM (the
“Executive”).

     WHEREAS, ACG Holdings, Inc. (“Holdings”) has entered into an Agreement and Plan of
Merger dated as of the date hereof, by and among Vertis Holdings, Inc., Vertis, Inc.
(“Vertis”), Victory Merger Sub, LLC, and Holdings (the “Merger Agreement”),
pursuant to which Holdings shall become a wholly owned subsidiary of Vertis, Inc. upon the closing
of the transactions contemplated thereunder (“Closing”);

     WHEREAS, the parties hereto desire that the Executive continue her employment pursuant to the
terms and conditions of that certain Employment Agreement dated as of April 19, 2007, between ACG
and the Executive, as amended as of August 24, 2007, and October 3, 2007, and as further amended
herein (the “Employment Agreement”), through a transition period that ends 90 days after
Closing and that the Executive’s cash severance arrangement thereunder be terminated and liquidated
in connection with Closing; and

     WHEREAS, Section 11.8 of the Employment Agreement allows ACG to reform any provision therein
to comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations
and other Treasury guidance promulgated under such Code Section (“Section 409A”);

     NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto agree to amend the Employment Agreement, effective as of and contingent upon
Closing, as follows:

1. Section 2.1 of the Employment Agreement is amended in its entirety as follows:

2.1. General. The Company hereby employs the Executive, and the Executive
agrees to serve, as President — ACG Integration of the Company, upon the terms and
conditions contained herein, and shall report to the Chief Executive Officer of
Vertis. The Executive shall have all the responsibilities and powers normally
associated with such office. The Executive shall perform such other duties and
services for the Company, commensurate with the Executive’s position, as may be
reasonably designated from time to time by the Company. The Executive agrees to
serve the Company faithfully and to the best of her ability under the direction of
the Board. The Executive’s principal employment location shall be Brentwood, TN,
subject to reasonable travel to fulfill the duties of Executive’s position.

 

 

2. Section 2.3 of the Employment Agreement is amended in its entirety as follows:

2.3. Term of Employment.

2.3.1 Transition Period. Unless earlier terminated pursuant to this
Agreement or extended by mutual agreement of the parties in writing, the Executive’s
employment hereunder shall terminate automatically 90 days after Closing, and the
period of employment through such date is hereinafter referred to as the
“Employment Term”.

2.3.2 Post-Transition Period Employment. The parties acknowledge that
during the 90-day period immediately following Closing (the “Transition
Period”) they will consider the possibility of the Executive’s employment
continuing beyond the Transition Period under terms and conditions mutually
agreeable to the parties and memorialized in a successor employment agreement, if at
all, by no later than the 90th day after Closing; it being understood that neither
party is obligated to enter into any such successor employment agreement.

3. Section 3.1 of the Employment Agreement is amended in its entirety as follows:

3.1 Base Salary. For services performed during the Transition Period, the
Executive shall be entitled to receive (a) a base salary at a rate of $350,000 per
annum, payable in arrears in equal installments not less frequently than biweekly in
accordance with the Company’s payroll practices, and (b) a monthly car allowance of
$1,100.00 (collectively, the “Base Salary”).

4. Section 3.3 of the Employment Agreement is amended in its entirety as follows:

3.3 Bonus. Executive shall not participate in any performance bonus
arrangement of the Company during the Transition Period.

5. Section 5.1 of the Employment Agreement is amended in its entirety as follows:

5.1. Payments; Benefits.

5.1.1 Payments. At Closing, the Company shall pay to the Executive all
earned but unpaid vacation pay and all unpaid Base Salary accrued through Closing.
In addition, effective at Closing, the Company irrevocably terminates and
liquidates, pursuant to Treas. Reg. § 1.409A-3(j)(4)(ix)(B), the Company’s cash
severance obligation to the Executive under Section 5.1 of the Employment Agreement
as in effect immediately prior to Closing, which cash severance obligation the
Company acknowledges constitutes deferred compensation under a plan described in
Treas. Reg. § 1.409A-1(c)(2)(i)(I). Such termination and liquidation shall be
effectuated through the payment by the Company to the Executive of a retention bonus
payment for services rendered during the Transition Period of $1,180,512 (the
“Retention Bonus Payment”), (a) 50% of which will be payable at Closing and
(b) 50% of which will be payable, subject only to the provisions of Sections 5.3 and
5.4, on the earlier of (i) the 90th day after Closing or (ii) the termination

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of the Executive’s employment by the Company or resignation by the Executive with
Good Reason. The Company represents and warrants that the Closing will result in a
“change of control event” within the meaning of Treas. Reg. § 1.409A-3(i)(5).

5.1.2 Termination; Resignation.

     (a) Subject to the provisions of Sections 5.3 and 5.4, if the Executive’s
employment is terminated automatically under Section 2.3, or if, prior to the
expiration of the Transition Period, the Executive’s employment is terminated by the
Company or the Executive resigns, the Company shall pay to the Executive in cash any
unpaid amounts of the Executive’s Base Salary for periods prior to the date of
termination or resignation. Any such amount shall be paid in a lump sum within five
business days after the date of termination or resignation.

     (b) Subject to the provisions of Sections 5.3 and 5.4, if the Executive’s
employment is terminated automatically under Section 2.3, or if, prior to the
expiration of the Transition Period, the Executive’s employment is terminated by the
Company or the Executive resigns with Good Reason, the Executive shall be entitled
to the following continued benefits during the Severance Period:

          (i) Medical, dental, vision, and prescription drug coverage for the Executive
and her eligible dependents (as defined in the applicable plan), if elected by the
Executive or eligible dependents under COBRA. Coverage will be provided initially
as COBRA continuation coverage from the date of termination through the end of the
applicable COBRA coverage period. The COBRA coverage will be provided under Company
group health plans for as long as the Company maintains the group health plans.
Upon termination of the Company’s plans, the COBRA coverage will be provided under
group health plans maintained by Vertis, Inc. or an affiliate (“Vertis”). If the
applicable COBRA coverage period ends before the expiration of the Severance Period,
the Executive may elect to continue coverage during the remainder of the Severance
Period for Executive and her eligible dependents by seeking coverage under an
individual insurance policy acceptable to Vertis. If the Executive demonstrates to
Vertis that she is unable to obtain an individual insurance policy with coverage
that is substantially equivalent to the coverage under the Company or Vertis plans,
then Executive and her eligible dependents may continue coverage under the Vertis
group health plan for the remainder of the Severance Period. During the Severance
Period, Executive shall pay the same premium contribution rate for coverage that is
paid by active Company senior executives while coverage is provided under the
Company’s group health plans, and active Vertis senior executives while coverage is
provided under Vertis’ plans or individual insurance policies. The Executive shall
be responsible for payment of her portion of the premiums. If Executive obtains
individual insurance coverage as described above, the Company will provide prompt
reimbursement of the Company portion of the premium only upon the Company’s receipt
of evidence of payment of the premium by the Executive, which reimbursement shall be
treated as taxable

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income to the Executive. The Executive and her dependents will not have the right
to further continued coverage upon expiration or termination of the Severance
Period, except if and as provided under COBRA and the Executive shall be responsible
for payment of 102% of the applicable premium (within the meaning of Code section
4980B(f)) for such COBRA coverage, calculated at applicable plan rates for similarly
situated COBRA qualified beneficiaries, for any such continued COBRA coverage that
remains in effect after expiration or termination of the Severance Period.

          (ii) Life insurance and accidental death and dismemberment insurance coverage
for the Executive. The Executive’s coverage under the Company plans may be
converted to an individual policy covering the Executive upon her termination of
employment, if elected by the Executive and subject to any rules, requirements or
limitations set forth in the group insurance policy. The Executive may elect to
obtain an individual policy that is not a conversion policy, but only if the cost of
new coverage is less than or equal to the cost of the conversion policy. The
individual policy shall have the same coverage levels as under the Company plans
(generally, a benefit equal to the lesser of two times annual compensation or
$500,000). The Executive shall be fully responsible for arranging coverage under
the individual policy and paying the applicable premiums. The Company will promptly
reimburse Executive for the premium payments only upon the Company’s receipt of
evidence of payment of the premium by the Executive, which reimbursement shall be
treated as taxable income to the Executive.

          (iii) Long-term disability insurance coverage for the Executive. The
Executive’s coverage under the applicable group long-term disability plan may be
converted to an individual policy covering the Executive upon her termination of
employment, if elected by the Executive and subject to any rules, requirements or
limitations set forth in the group insurance policy. The individual policy shall
have the same coverage levels as under the Company plan (generally monthly income
replacement coverage of the lesser of 66.67% of monthly earnings or $15,000 per
month). The Executive may elect to obtain an individual policy that is not a
conversion policy, but only if the cost of new coverage is less than or equal to the
cost of the conversion policy. The Executive shall be responsible for arranging
coverage under the individual policy and paying the applicable premiums. The
Company will promptly reimburse Executive for the applicable premium payments only
upon the Company’s receipt of evidence of payment of the premium by the Executive,
which reimbursement shall be treated as taxable income to the Executive. The
provision of benefits shall be subject to all applicable plan document terms.

          (iv) Continued eligibility for coverage and benefits under an employee
assistance program and tuition assistance program maintained by the Company or
Vertis with the costs therefor paid by the Company during the Severance Period.

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          (v) The Company shall pay the cost of providing the Executive with outplacement
services, up to a maximum of $25,000.00, provided that such services are (A)
utilized by the Executive within six months following the date of termination and
(B) provided by a recognized outplacement provider. Such payment shall be made by
the Company directly to the service provider promptly following the provision of
such services and the presentation to the Company of documentation of the provision
of such services, and in all events by no later than the first anniversary of the
date of termination. Such services shall include office facilities and telephone
answering services during such six-month period.

     (c) Except as determined in accordance with the terms of the employee benefit
plans or programs of the Company or such parent or as set forth in Section 5.1, the
Executive shall have no further right to receive any other compensation or benefits
after such termination or resignation.

     (d) All payments and reimbursements hereunder shall be subject to applicable
withholding and payroll taxes.

     (e) Anything to the contrary notwithstanding, if the Executive’s employment is
terminated automatically under Section 2.3, such termination shall be deemed a
termination by the Company without Cause prior to the expiration of the Transition
Period.

5.1.3 Date of Termination. The date of termination of employment shall be
the date specified in a written notice of termination to the Executive, which date
shall not be prior to the date of such notice.

5.1.4. Release. If the Executive’s employment is terminated by the Company
or the Executive resigns with Good Reason, the Company shall release the Executive
from liability for any and all acts or omissions of the Executive except for the
Executive’s gross negligence or willful misconduct.

6. Section 5.3 of the Employment Agreement is amended in its entirety as follows:

5.3 Conditions Applicable to Portion of Retention Bonus Payment and the
Severance Period. If, during the Transition Period, the Executive materially
breaches the Executive’s obligations under Section 8 or resigns without Good Reason,
the Company may, upon written notice to the Executive, terminate its obligation to
make the payment referred to in clause (b) of Section 5.1.1. If, during the
Transition Period or at any time during the Severance Period, the Executive
materially breaches the Executive’s obligations under Section 8 or resigns without
Good Reason, the Company may, upon written notice to the Executive, terminate the
Severance Period and cease to provide any further benefits described in Section
5.1.2. Anything herein to the contrary notwithstanding, the Company’s obligation to
make any payment (other than the payments required to be made at Closing) or provide
any benefits (after the end of the Transition Period) described in Section 5.1 shall
be subject to the Executive’s

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execution of the Company’s standard form release of claims prior to the scheduled
date of payment.

7. Section 5.4 of the Employment Agreement is amended in its entirety as follows:

5.4 Death. In the event of the Executive’s death during the Transition
Period, any unpaid balance of the Retention Bonus Payment shall be paid to the
Executive’s estate when such amount would otherwise have been paid to the Executive
and the Executive’s spouse and eligible dependents (if any) shall continue to
receive the health, vision, dental, and prescription drug coverage for the remainder
of the applicable Severance Period.

8. All amounts provided to be paid pursuant to the Amended and Restated American Color Graphics,
Inc. Supplemental Executive Retirement Plan, as amended, shall be paid at the time provided for in
such Plan.

9. Clauses (e) and (g) of Section 5.6 (Good Reason) of the Employment Agreement are hereby deleted.
Clause (b) of Section 5.6 of the Employment Agreement shall be deemed to refer to the
responsibilities and title referred to in Section 1 hereof.

10. All references in Section 8.1 (Non-Solicitation) of the Employment Agreement to “the Company”
shall be deemed to be references to “Vertis and its subsidiaries”.

11. All references in Section 11.9 (Nondisparagement) of the Employment Agreement to “the Company”
shall be deemed to be references to “Vertis and its subsidiaries”. Section 11.9 of the Employment
Agreement is also amended by inserting the phrase “customer or vendors” after the word
“stockholders”.

12. Section 11.8 of the Employment Agreement is amended in its entirety as follows:

11.8. Section 409A. This Agreement is intended to comply with, or otherwise
be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”) and any regulations and Treasury guidance promulgated thereunder.
If the Company determines in good faith that any provision of this Agreement would
cause the Executive to incur an additional tax, penalty or interest under Section
409A of the Code, the Company and the Executive shall use reasonable efforts to
reform such provision, if possible, in a mutually agreeable fashion to maintain to
the maximum extent practicable the original intent of the applicable provision
without violating the provisions of Section 409A of the Code. With respect to any
reimbursement of expenses of, or any provision of in-kind benefits to, the
Executive, as specified under this Agreement, such reimbursement of expenses or
provision of in-kind benefits shall be subject to the following conditions: (a) the
expenses eligible for reimbursement or the amount of in-kind benefits provided in
one taxable year shall not affect the expenses eligible for reimbursement or the
amount of in-kind benefits provided in any other taxable year; (b) the reimbursement
of an eligible expense shall be made no later than the end of the year after the
year in which such expense was incurred; and (c) the

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right to reimbursement or in-kind benefits shall not be subject to liquidation or
exchange for another benefit.

13. Section 11.11 of the Employment Agreement is amended by adding the following new definitions to
the end thereof:

“Closing” has the meaning set forth in the Merger Agreement.

“Merger Agreement” means the Agreement and Plan of Merger dated as of the
date hereof, by and among Vertis Holdings, Inc., Vertis, Inc. (“Vertis”), Victory
Merger Sub, LLC, and ACG Holdings, Inc.

14. The rights (but not the obligations) of ACG hereunder shall not be assignable, except to
Vertis. Nothing in this agreement is intended to confer upon Vertis or any of its affiliates any
rights, benefits or remedies of any nature whatsoever by reason of this agreement.

15. The obligations of ACG under the Employment Agreement are not subject to any conditions except
as expressly provided herein. ACG shall have no right of setoff or recoupment with respect to any
of its obligations under the Employment Agreement.

16. Section 8.3 of the Employment Agreement is amended by changing the reference to Section
5.1.1(a) therein to Section 5.1.

17. The definition of “Competitor” in Section 11.11 of the Employment Agreement is amended in its
entirety as follows:

     “Competitor” means any Person that (a) prints retail advertising inserts or
provides premedia services for printing and (b) unless the Executive irrevocably
receives all the payments and benefits referred to in Section 5.1, has annual
combined retail advertising insert printing and premedia revenues for the most
recently ended annual reporting period in excess of $250 million.

In all other respects, the Employment Agreement is hereby ratified and confirmed.

(Signatures begin on the next page.)

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     IN WITNESS WHEREOF, ACG has caused this Amendment to be duly executed and the Executive has
hereunto set her hand, effective as of and contingent upon Closing.

	 	 	 	 	 
	 	AMERICAN COLOR GRAPHICS, INC.

 	 
	 	By:  	/s/ Stephen M. Dyott
 	 
	 	 	Name:  	Stephen M. Dyott 	 
	 	 	Title:  	Chairman and CEO 	 
	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ Kathleen A. DeKam
 	 
	 	Name:  	Kathleen A. DeKam 	 
	 	 	 
	 

8Exhibit 10.42

Exhibit 10.42

2003 STOCK INCENTIVE PLAN

OF RF MICRO DEVICES, INC.

Restricted Stock Award Agreement

(Performance-Based and Service-Based Award)

     THIS AGREEMENT (together with Schedule A, attached hereto, the “Agreement”), made effective as
of                                                    , 2007 (the “Effective Date”) between RF MICRO DEVICES, INC., a North Carolina
corporation (the “Corporation”), and XXXXXX, an employee of, or individual in service to,
the Corporation or a related entity (the “Participant”);

R E C I T A L S :

     WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors has approved
the grant to the Participant of a contingent right to receive a restricted stock award (as defined
in Section 4, below, the “Award”) for shares of the Corporation’s common stock (the “Common Stock”)
issuable under the RF Micro Devices, Inc. 2003 Stock Incentive Plan, as amended (the “Plan”), the
grant of which Award is subject to the attainment of certain performance objectives and the vesting
of which Award is subject to certain service requirements, as further described in this Agreement;

     NOW, THEREFORE, in furtherance of the purposes of the Plan, the Corporation and the
Participant hereby agree as follows:

     1. Incorporation of Plan. The rights and duties of the Corporation and the
Participant under this Agreement shall in all respects be subject to and governed by the provisions
of the Plan, the terms of which are incorporated herein by reference. In the event of any conflict
between the provisions in the Agreement and those of the Plan, the provisions of the Plan shall
govern. Unless otherwise defined herein, capitalized terms in this Agreement shall have the same
definitions as set forth with the Plan.

     2. Certain Defined Terms. The following terms used in this Agreement shall have the
meanings set forth in this Section 2:

	 	(a)	 	The “Award Date” is the date on which the Award is or may be
granted to the Participant following the Administrator’s determination
regarding whether all or a portion of the Performance Objectives have been
attained and completion of such other action as may be necessary to complete
the grant of the Award.
	 
	 	(b)	 	The “Effective Date” is the effective date of the Agreement, as
stated above.
	 
	 	(c)	 	The “Participant” is XXXXXX.
	 
	 	(d)	 	“Performance Objectives” are the specific performance
objectives identified by the Committee in the minutes of the Committee’s
meeting dated May 1, 2007.

 

 

	 	(e)	 	The “Performance Period” is the period beginning May 1, 2007
and ending at the close of the Corporation’s current fiscal year on March 29,
2008.
	 
	 	(f)	 	The “Restriction Period” is the period beginning on the Award
Date and ending on such date or dates and occurrence of such conditions as
described in Section 3 of Schedule A attached hereto.
	 
	 	(g)	 	The “Shares” shall be that number, if any, of shares of Common
Stock subject to the Award which are or may be granted under this Agreement, as
such number may be determined in accordance with Section 1 of Schedule A.

     3. Award Opportunity; Incorporation of the Terms of Schedule A of the Agreement.

	 	(a)	 	The Corporation hereby grants to the Participant an opportunity
to be granted the Award for a certain number of shares of Common Stock (as
defined above, the “Shares”) based upon the attainment of at least two and up
to six of the Performance Objectives during the Performance Period. The number,
if any, of shares of Common Stock subject to the Award shall be determined by
the Administrator based on the achievement by the Corporation of the
Performance Objectives. No Award of Shares is being granted at this time, and
no Award shall be granted unless and until the Administrator, in its sole
discretion and in accordance with the terms of the Plan and this Agreement,
determines whether and to what extent the Award has been earned (including but
not limited to determining whether and to what extent the Performance
Objectives have been met), determines the number of Shares that shall be
subject to the Award and takes any other action it deems necessary or advisable
in order to complete the grant.
	 
	 	(b)	 	The Participant expressly acknowledges that the terms of
Schedule A shall be incorporated herein by reference and shall constitute part
of this Agreement. The Corporation and the Participant further acknowledge
that the Corporation’s signature on the signature page hereof, and the
Participant’s signature on the Grant Letter contained in Schedule A, shall
constitute their acceptance of all of the terms of this Agreement.

     4. Grant of Restricted Stock Award. Subject to the terms of this Agreement and the
Plan, the Corporation shall grant the Participant a restricted stock award (the “Award”) for that
number of Shares of Common Stock as is determined in accordance with Schedule A if and only if a
minimum of two (and up to six) of the Performance Objectives are met during the Performance Period,
as further described in Schedule A. The number of Shares, if any, subject to the Award shall be
determined by the Administrator in its sole discretion in accordance with the Plan and this
Agreement (including Schedule A) following completion of the Performance Period. The Award Date
shall be May 1, 2008 or as soon as practicable after the end of the Performance Period and the
Administrator’s determination of the extent, if any, to which the Performance Objectives have been
met and the Award has been earned. The Corporation shall give notice to the Participant after the
Performance Period regarding whether the Award has been granted and the number of Shares subject to
the Award.

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     5. Dividends and Voting Rights. The Participant or his legal representatives,
legatees or distributees shall not be deemed to be the holder of any Shares subject to the Award
and shall not have any dividend rights, voting rights or other rights as a shareholder unless and
until (and then only to the extent that) the Award has been earned and vested and certificates for
such Shares have been issued and delivered to him or them.

     6. Vesting of Award.

	 	(a)	 	Subject to the terms of the Plan and the Agreement, the Shares
subject to the Award shall be deemed vested, and such Shares shall be
distributable as provided in Section 8 herein, upon such date or dates, and
subject to such conditions, as are described in this Agreement, including
Section 3 of Schedule A. Without limiting the effect of the foregoing, the
Shares subject to the Award may vest in installments over a period of time, if
so provided in Schedule A. The Participant expressly acknowledges that the
Award shall vest only upon such terms and conditions as are provided in
Schedule A of this Agreement and otherwise in accordance with the terms of the
Plan.
	 
	 	(b)	 	The Administrator has sole authority to determine whether and
to what degree the Award has been earned and vested and to interpret the terms
and conditions of this Agreement and the Plan.

     7. Effect of Termination of Employment; Forfeiture of Award. Except as may be
otherwise provided in the Plan or the Agreement, in the event that the employment of the
Participant is terminated for any reason and the Award has not been earned and vested pursuant to
the terms of this Agreement, then the Award, to the extent not earned and vested as of the
Participant’s termination date, shall be forfeited immediately upon such termination, and the
Participant shall have no further rights with respect to the Award or the Shares underlying that
portion of the Award that has not yet been earned and vested. The Participant expressly
acknowledges and agrees that the termination of his employment shall (except as may otherwise be
provided in the Agreement) result in forfeiture of the Award and the Shares to the extent the Award
has not been earned and vested as of the date of his termination of employment or service.

     8. Settlement of Award. The Award, if earned and vested in accordance with the terms
of the Agreement, shall be payable in whole shares of Common Stock. A certificate or certificates
for Shares subject to the Award shall be issued in the name of the Participant (or his beneficiary)
as soon as practicable after, and only to the extent that, the Award (or portion thereof) has
vested.

     9. No Right of Continued Employment or Service. Nothing contained in this Agreement
or the Plan shall confer upon the Participant any right to continue in the employment or service of
the Corporation or a related entity or to interfere in any way with the right of the Corporation or
a related entity to terminate the Participant’s employment or service at any time. Except as
otherwise expressly provided in the Plan and this Agreement (including but not limited to Schedule
A), all rights of the Participant under the Plan with respect to the unearned or unvested portion
of his Award shall terminate upon the termination of employment or service of the Participant with
the Corporation or a related entity.

     10. Nontransferability of Award and Shares. The Award shall not be transferable
(including by sale, assignment, pledge or hypothecation) other than by will or the laws of
intestate

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succession. The designation of a beneficiary does not constitute a transfer. The Participant
shall not sell, transfer, assign, pledge or otherwise encumber the Shares subject to the Award
until all conditions to vesting have been met.

     11. Withholding; Tax Consequences. The Participant acknowledges that the Corporation
shall require the Participant to pay the Corporation the amount of any federal, state, local,
foreign or other tax or other amount required by any governmental authority to be withheld and paid
over by the Corporation to such authority for the account of the Participant, and the Participant
agrees, as a condition to the grant of the Award, to satisfy such obligations. The Participant
acknowledges that the Corporation has no responsibility to take or refrain from taking any actions
in order to achieve a certain tax result for the Participant.

     12. Administration. The authority to construe and interpret this Agreement and the
Plan, and to administer all aspects of the Plan, shall be vested in the Administrator, and the
Administrator shall have all powers with respect to this Agreement as are provided in the Plan.
Any interpretation of the Agreement by the Administrator and any decision made by it with respect
to the Agreement is final and binding.

     13. Superseding Agreement; Binding Effect. This Agreement supersedes any statements,
representations or agreements of the Corporation with respect to the grant of the Award or any
related rights, and the Participant hereby waives any rights or claims related to any such
statements, representations or agreements. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective executors, administrators, next-of-kin,
successors and assigns. Except as may be otherwise provided in Section 18 of the Plan, this
Agreement does not supersede or amend any existing Change in Control Agreement, Inventions,
Confidentiality and Nonsolicitations Agreement, Employment Agreement or any other similar agreement
between the Participant and the Company, including, but not limited to, any restrictive covenants
contained in such agreements.

     14. Governing Law. Except as otherwise provided in the Plan or herein, this Agreement
shall be construed and enforced according to the laws of the State of North Carolina, without
regard to the conflict of laws provisions of any state, and in accordance with applicable federal
laws of the United States.

     15. Amendment and Termination; Waiver. Subject to the terms of the Plan and this
Agreement, this Agreement may be modified or amended only by the written agreement of the parties
hereto. Notwithstanding the foregoing, the Administrator shall have unilateral authority to amend
the Agreement (without Participant consent) to the extent necessary to comply with applicable law
or changes to applicable law (including but not limited to Code Section 409A). The waiver by the
Corporation of a breach of any provision of the Agreement by the Participant shall not operate or
be construed as a waiver of any subsequent breach by the Participant.

     16. Notices. Except as may be otherwise provided by the Plan, any written notices
provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently
given if either hand delivered or if sent by fax or overnight courier, or by postage paid first
class mail. Notices sent by mail shall be deemed received three business days after mailed but in
no event later than the date of actual receipt. Notice may also be provided by electronic
submission, if and to the extent permitted by the Administrator. Notices shall be directed, if to
the Participant, at the

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Participant’s address indicated by the Corporation’s records, or if to the Corporation, at the
Corporation’s principal office, attention Treasurer, RF Micro Devices, Inc.

     17. Severability. The provisions of this Agreement are severable and if any one or
more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions shall nevertheless be binding and enforceable.

     18. Restrictions on Award and Shares. The Corporation may impose such restrictions on
the Award and any Shares issued pursuant to the Award as it may deem advisable, including without
limitation restrictions under the federal securities laws, the requirements of any stock exchange
or similar organization and any blue sky or state securities laws applicable to such Award or
Shares. Notwithstanding any other provision in the Plan or the Agreement to the contrary, the
Corporation shall not be obligated to issue, deliver or transfer shares of Common Stock, to make
any other distribution of benefits, or to take any other action, unless such delivery, distribution
or action is in compliance with all applicable laws, rules and regulations (including but not
limited to the requirements of the Securities Act). The Corporation may cause a restrictive legend
to be placed on any certificate for Shares issued pursuant to the Award in such form as may be
prescribed from time to time by applicable laws and regulations or as may be advised by legal
counsel.

     19. Counterparts; Further Instruments. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. The parties hereto agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the purposes and intent of
this Agreement.

     IN WITNESS WHEREOF, this Agreement has been executed on behalf of the Corporation and by the
Participant effective as of the Effective Date stated on page one of this Agreement.

	 	 	 	 	 
	 	RF MICRO DEVICES, INC.

 	 
	 	By:  	/s/  Robert A. Bruggeworth
 	 
	 	 	Robert A. Bruggeworth 	 
	 	 	President and Chief Executive Officer 	 
	 

Attest:

	 	 	 
	/s/ William Priddy
	 	 
	 

William Priddy

	 	 
	Secretary & Chief Financial Officer
	 	 

[Signature page of Participant to follow on Schedule A/Grant Letter]

5

 

2003 Stock Incentive Plan of RF Micro Devices, Inc.

Restricted Stock Award Agreement

(Performance-Based and Service-Based Award)

Schedule A/Grant Letter

     1. Award Opportunity.

	 	(a)	 	Pursuant to the terms and conditions of the Corporation’s 2003
Stock Incentive Plan, as amended (the “Plan”), you (the “Participant”) are
eligible to be granted a restricted stock award (the “Award”) for that number of
Shares (the “Shares”) of Common Stock as may be determined pursuant to Section 1
herein.
	 
	 	(b)	 	No Award will be granted unless at least two of the Performance
Objectives are met during the Performance Period. If two of the Performance
Objectives are met, the Participant shall be granted an Award for the Threshold
number of shares (50% of Target). If three of the Performance Objectives are
met, the Participant shall be granted an Award for 75% of the Target
number of shares. If four of the Performance Objectives are met, the Participant shall be
granted an Award for 100% of the Target number of shares. If five of the
Performance Objectives are met, the Participant shall be granted an Award for
125% of the Target number of shares. If all six of the Performance Objectives
are met, the Participant shall be granted an Award for the Maximum
number of shares (150% of Target). The Award shall not be granted until following the end
of the Performance Period and then only if the terms and conditions described in
the Agreement have been met. The actual number of shares which may be subject
to the Award shall be as provided in Section 1(c), below.
	 
	 	(c)	 	Number of Shares Potentially Subject to Award:

	 	 	 	 	 
	 

	 	Threshold Number of Shares (50% of Target):
	 	                                        
	 

	 	75% of Target:
	 	                                        
	 

	 	Target Number of Shares (100% of Target):
	 	                                        
	 

	 	125% of Target:
	 	                                        
	 

	 	Maximum Number of Shares (150% of Target):
	 	                                        

	 	(d)	 	The Performance Objectives must be met, if at all, during the
Performance Period. The Administrator has sole discretion to determine if, and
to what extent, any or all Performance Objectives are met and to interpret the
other terms and conditions of this Agreement.

     2. Performance Objectives. The Performance Objectives for the Performance Period
applicable to the Participant pursuant to this Agreement are as specified in the minutes of the
meeting of the Compensation Committee of the Board of Directors of the Corporation held on May 1,
2007.

     3. Vesting of Award. If the Award is granted in accordance into this Agreement, the
Award shall vest as follows:

	 	(i)	 	The Award shall be deemed vested with respect to
fifty percent (50%) of the Shares subject to the Award on the Award
Date, subject to the

A-1

 

	 	 	 	continued employment or service of the Participant with the
Corporation or a related entity through such vesting date;
	 
	 	(ii)	 	The Award shall be deemed vested with respect to
an additional twenty-five percent (25%) (for a total of seventy-five
percent (75%)) of the Shares subject to the Award on the first
anniversary of the Award Date, subject to the continued employment or
service of the Participant with the Corporation or a related entity
through such vesting date; and
	 
	 	(iii)	 	The Award shall be deemed vested with respect to
an additional twenty-five percent (25%) (for a total of one hundred
percent (100%)) of the Shares subject to the Award on the second
anniversary of the Award Date, subject to the continued employment or
service of the Participant with the Corporation or a related entity
through such vesting date.

     By my signature below, I, the Participant, hereby acknowledge receipt of this Grant Letter and
the Restricted Stock Award Agreement (the “Agreement”) effective as of                                                              , 200_,
between the Participant and the Corporation which is attached to this Grant Letter. I understand
that the Grant Letter and other provisions of Schedule A herein are incorporated by reference into
the Agreement and constitute a part of the Agreement. By my signature below, I further agree
to be bound by the terms of the Plan and the Agreement, including but not limited to the terms of
this Grant Letter and the other provisions of Schedule A contained herein. The Corporation
reserves the right to treat the Award and the Agreement as cancelled, void and of no effect if the
Participant fails to return a signed copy of the Grant Letter within 30 days of receipt.

      

			
	Signature:                                                             
	 	Date:                     

Note: If there are any discrepancies in the name or address shown above, please make the
appropriate corrections on this form. Please retain a copy of the Agreement, including this Grant
Letter, for your files.

A-2

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