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Exhibit 10.27    
    

SPECIALTYSEMI, INC.  

 
  STOCK APPRECIATION RIGHTS PLAN
  ADOPTED AND EFFECTIVE MARCH 12, 2002    
    

1.     Purpose.  

        This Stock Appreciation Rights Plan for Specialtysemi, Inc., the Company (as defined herein) is intended to
incentivize certain persons specified as "Transferred Employees" in the Employee Matters Agreement (as defined herein) by providing those persons with opportunities to receive cash incentive
compensation based on the appreciation in value of the Common Stock of Conexant Systems, Inc. 

	2.
	Definitions. The following words and phrases as used herein shall have the following
meanings: 

        (a)   "Additional Security" means, with respect to any Exercise Share, any
warrant, right, option or other security issued pursuant to Section 5(b), (c), (d), (g), (h), (i) or (j) of the Warrant in respect of each right to purchase one
(1) Exercise Share. 

        (b)   "Base Value" means the sum of (i) the Exercise Price (as defined
in the Warrant) per Exercise Share, as such Exercise Price is adjusted from time to time as provided in the Warrant, and (ii) the exercise price or conversion price payable upon exercise or
conversion of any Additional Security upon exercise or conversion thereof, as adjusted from time to time. 

        (c)   "Board" means the Board of Directors of the Company. 

        (d)   "Cause" means, with respect to a particular Participant, (i) the
Board's determination that the Participant failed to substantially perform his or her duties (other than any such failure resulting from the Participant's Disability) which is not remedied within
30 days after receipt of written notice from the Company specifying such failure; (ii) the Board's determination that the Participant failed to carry out, or comply with, in any material
respect any lawful and reasonable directive of the Board consistent with the terms of his or her employment, which is not remedied within 30 days after receipt of written notice from the
Company specifying such failure; (iii) the Participant's conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated
probation for any felony or crime involving moral turpitude; (iv) the Participant's unlawful use (including being under the influence) or possession of illegal drugs on the Company's premises
or while performing the Participant's duties and responsibilities under this Agreement; or (v) the Participant's commission of an act of fraud, embezzlement, misappropriation, willful
misconduct, or breach of fiduciary duty against the Company. 

        (e)   "Committee" means the Compensation Committee of the Board as it may be
comprised from time to time or such other Committee of the Board designated by the Board in accordance with subsection 3(a) herein to administer the Plan. 

        (f)    "Common Stock" means (i) the common stock, $1.00 par value, of
Conexant Systems, Inc. or (ii) any class or series of stock into which such Common Stock shall have been changed or any stock resulting from any reclassification of such Common Stock. 

        (g)   "Company" means Specialtysemi, Inc., a Delaware corporation. 

        (h)   "Conexant" means Conexant Systems, Inc., a Delaware corporation. 

        (i)    "Director" means a member of the Board of the Company. 

        (j)    "Disability" means, at any time the Company or any of its affiliates
sponsors a long-term disability plan for the Company's employees, "disability" as defined in such long-term disability plan for the purpose of determining a participant's
eligibility for benefits, provided, however, if the long-term disability plan contains multiple definitions of disability, "Disability" shall refer to that definition of disability which,
if the Participant qualified for such disability benefits, would provide coverage for the longest period of time. The determination of whether the Participant has a Disability shall be made by 

 

the
person or persons required to make disability determinations under the long-term disability plan. At any time the Company does not sponsor a long-term disability plan for
its employees, Disability shall mean the Participant's inability to perform, with or without reasonable accommodation, the essential functions of his position hereunder for a minimum of three
consecutive months as a result of incapacity due to mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to the Participant or the
Participant's legal representative, such agreement as to acceptability not to be unreasonably withheld or delayed. Any refusal by the Participant to submit to a medical examination for the purpose of
determining Disability shall be deemed to constitute conclusive evidence of the Participant's Disability. 

        (k)   "Employee" means a person who at the time of grant of a Stock
Appreciation Right is employed by the Company or a Subsidiary and who is designated as a Transferred Employee under the Employee Matters Agreement. 

        (l)    "Employee Matters Agreement" means that certain employee matters
agreement by and among the Company; Conexant Systems, Inc., a Delaware corporation; Carlyle Partners III, L.P., a Delaware limited partnership; CP III Coinvestment Partners, L.P., a Delaware limited
partnership; Carlyle High Yield Partners, L.P., a Delaware limited partnership and Newport Fab, L.L.C., a Delaware limited liability company, dated March 8, 2002. 

        (m)  "Exercise Date" means the later of (i) the 10th
business day after the Company receives written notice of the Participant's exercise of a Stock Appreciation Right as provided herein and (ii) such later date selected by the Committee in the
event that the Committee determines in its discretion that the Company cannot effect sufficient sales of Exercise Shares or Additional Securities on established trading markets prior to the date
referred to in the foregoing clause (i) of this definition of Exercise Date in compliance with law without (in the discretion of the Committee) exposing the Company to potential material
liability or cost. 

        (n)   "Exercise Shares" has the meaning assigned to such term in the Warrant. 

        (o)   "Expiration Date" means the earlier of (i) the last date on which
a Participant may exercise a Stock Appreciation Right as provided in the Stock Appreciation Rights Terms and Conditions and (ii) the termination or expiration of the Exercise Period (as defined
in the Warrant). 

        (p)   "Fair Market Value" means, as of any Exercise Date, the aggregate cash
proceeds actually received by the Company from the sale of any one Exercise Share and the Additional Securities issued pursuant to the Warrant in respect of such Exercise Share on any of the ten
(10) business days immediately preceding such Exercise Date (it being understood that if one or more of such sales occurs during such period at different prices, the sales price to be used for
the purpose of determining the Fair Market Value shall be determined by the Committee in its reasonable discretion), less brokerage fees or commissions, underwriters commissions and other costs and
expenses of sale incurred by the Company in connection with such sale(s). Any determination of Fair Market Value shall be made in the good faith judgment of the Committee and such determination shall
be conclusive and binding for all purposes. 

        (q)   "Grant Date" means, with respect to a Stock Appreciation Right granted to
a Participant, the date on which the Board or the Committee, as applicable, grants such Stock Appreciation Right to such Participant. 

        (r)   "Grant Notice" means a notice from the Company to a Participant, which
may be electronic, written or in such other form as determined by the Company in its sole and exclusive discretion, and which shall provide notice to the Participant of the grant of a Stock
Appreciation Right to such Participant and shall attach (or otherwise make available at a later date) the Stock Appreciation Rights Terms and Conditions with respect to such Stock Appreciation Right. 

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        (s)   "Participant" means a person to whom a Stock Appreciation Right is
granted. 

        (t)    "Payment" means the consideration received with respect to a vested Stock
Appreciation Right (or portion thereof) in accordance with Section 9 herein. 

        (u)   "Plan" means this Specialtysemi, Inc. Stock Appreciation Rights
Plan. 

        (v)   "Stock Appreciation Right" means a right granted under the Plan which,
when vested, shall be exercisable for a Payment. 

        (w)  "Subsidiary" means any corporation or other entity in which the Company,
directly or indirectly, controls 50% or more of the combined voting power of such corporation or other entity. 

        (x)   "Vesting Date" means the date or dates on which a Stock Appreciation
Right (or portion thereof) is vested in accordance with Section 6(a) herein. 

        (y)   "Warrant" shall mean that Warrant to Purchase Common Stock issued by
Conexant Systems, Inc. to the Company dated as of the date hereof. 

3.     Administration.  

        (a)   Delegation to Committee. Subject to the provisions of the Plan, the Board
may delegate administration of the Plan to a Committee and the term "Committee" shall apply to the Compensation Committee or to any person or persons to whom such authority has been delegated. If the
Board designates a Committee other than the Compensation Committee to administer the Plan, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. All
actions of the Committee shall be undertaken with the approval of a majority of the members of the Committee. If the Board designates a Committee other than the Compensation Committee to administer
the Plan, the Board may, in its sole discretion, increase the size of the Committee and appoint additional members, remove members (with or without cause) and substitute new members, fill vacancies or
remove all members of the Committee from time to time. The Board may cease delegation to the Committee at any time and revest in the Board the administration of the Plan. References in the Plan to the
Board shall include the Compensation Committee or any other Committee established by the Board. 

        (b)   The Committee's determinations under the Plan need not be uniform and may be made by it selectively among Employees who
receive, or who are eligible to receive, Stock Appreciation Rights under the Plan, whether or not such persons are similarly situated. 

        (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)   Subject to the express provisions of the Plan, the Committee shall have the power to implement (including the power to
delegate such implementation to appropriate officers of the Company), interpret and construe the Plan and Stock Appreciation Rights or other documents defining the rights and obligations of the
Company and Participants hereunder and thereunder, to determine all questions arising hereunder and thereunder, and 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 Stock Appreciation Right shall be conclusive and binding. Any action
taken by, or inaction of, the Committee relating to the Plan or any Stock Appreciation Right 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 Stock Appreciation Rights. 

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4.     Eligibility and Award of Stock Appreciation Rights.  

        (a)   Eligibility. The Board or the Committee, as applicable, has discretion to
grant Stock Appreciation Rights to Employees. The number of Stock Appreciation Rights granted to each Participant (if any) shall be determined by the Board. 

        (b)   Stock Appreciation Rights. Any Participant may be granted more than one
Stock Appreciation Right under the Plan. The maximum aggregate number of Stock Appreciation Rights available for award under the Plan shall be two million nine hundred seventy-nine thousand four
hundred fifty-six (2,979,456) subject to adjustment as provided in Section 8. Stock Appreciation Rights under the Plan that are forfeited or canceled, or that lapse, may be available for
subsequent grant under the Plan unless the Plan has been terminated. 

        (c)   Notification of Grant. Each Stock Appreciation Right under the Plan shall
be evidenced by a Grant Notice and the Stock Appreciation Rights Terms and Conditions related thereto. The Grant Notice shall set forth the number of Stock Appreciation Rights and the Stock
Appreciation Rights Terms and Conditions shall set forth such other terms and conditions applicable to the Stock Appreciation Right, as determined by the Board or the Committee as applicable, not
inconsistent with the terms of the Plan. In the event of any conflict between a Stock Appreciation Right Grant Notice and/or the Stock Appreciation Rights Terms and Conditions and the Plan, the terms
of the Plan shall govern. 

5.     Terms of Stock Appreciation Rights.  

        (a)   Stock Appreciation Rights Terms and Conditions. Each Stock Appreciation
Right granted under this Plan shall be evidenced by an individual Grant Notice and the Stock Appreciation Rights Terms and Conditions each of which shall be in such form and contain such conditions as
the Board or Committee, as applicable and in its discretion, shall deem appropriate and the provisions of which need not be identical. 

        (b)   Execution of Documents. A Grant shall become effective upon the execution
by the Participant of a Stock Appreciation Right Grant Notice acknowledging the terms and conditions of the Grant. 

        (c)   No Consideration. Participants shall neither be required, nor permitted,
to pay any amount for a Stock Appreciation Right. 

        (d)   Termination of Employment or Directorship. Except as otherwise provided
herein, a Stock Appreciation Right may only be exercised by a person who is an Employee of the Company on the Exercise Date and who continuously remained an Employee since the Grant Date of the Stock
Appreciation Right, pursuant to the following terms: 

         (i)    In the event a Participant ceases to be an Employee of the Company or a Subsidiary (other than by reason of death or Disability),
all nonvested
Stock Appreciation Rights shall be forfeited as of the date of termination and all vested Stock Appreciation Rights that have not been exercised may be exercised by such Participant within three
(3) months after the date of termination, but in no event later than the Expiration Date, and all remaining Stock Appreciation Rights not exercised within three (3) months following such
termination will be automatically exercised on the earlier of the Expiration Date or the close of the third (3rd) month following such Participant's termination of employment; provided,
however, that if the Participant's employment with the Company is terminated for Cause, all nonvested Stock Appreciation Rights shall be forfeited as of the date of termination and all vested Stock
Appreciation Rights granted to such Participant shall, to the extent not previously exercised, terminate. 

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        (ii)   Death or Disability of Participant. If a Participant shall die while an Employee of the
Company
or a Subsidiary or if the Participant's employment with the Company or a Subsidiary shall terminate by reason of Disability, all vested Stock Appreciation Rights granted to such Participant may,
unless earlier terminated in accordance with their terms, be exercised by the following: (i) the Participant; (ii) the personal representative of the Participant's estate; or
(iii) a person who acquired the right to exercise such Stock Appreciation Rights by bequest or inheritance or otherwise by reason of death of the Participant, at any time within twelve
(12) months after the date of death or Disability of the
Participant, but in no event later than the Expiration Date of the Stock Appreciation Right; provided that during the lifetime of the Participant any Stock Appreciation Right granted to him/her may be
exercised only by the Participant or if the Participant becomes incapacitated, by his/her legal guardian. All nonvested Stock Appreciation Rights shall be forfeited as of the date of death or
Disability and all remaining vested Stock Appreciation Rights not exercised within twelve (12) months following the date of death or Disability shall be automatically exercised on the earlier
of the Expiration Date or the close of the twelfth (12th) month following the date of death or Disability. 

        (iii) Nothing in the Plan or in any Stock Appreciation Right granted pursuant hereto shall confer upon an Employee any right to continue in the
employ of the Company or a Subsidiary or interfere in any way with the right of the Company or a Subsidiary to terminate or change the terms of such employment at any time. 

6.     Vesting and Forfeiture.  

        (a)   Vesting.

        (i)    Subject to the limitations contained herein, each Stock Appreciation Right shall become vested as provided in the applicable Stock
Appreciation
Right Terms and Conditions, as determined by the Board in its sole and exclusive discretion. The vesting provisions of individual Stock Appreciation Rights may vary on such criteria as the Board deems
appropriate. 

         (ii)   If a Participant's service as an Employee has been interrupted due to an approved leave of absence, including without limitation such
Participant's approved sick leave, maternity leave, parental leave, military leave, or other leave of absence approved by the Company or a Subsidiary, as applicable, then the Company may suspend
Payment of such Participant's vested Stock Appreciation Right upon such Participant's election to exercise such Stock Appreciation Right during such leave of absence and until such time (but not
beyond the Expiration Date) as such Participant (A) has returned to full-time employment by the Company or a Subsidiary and (B) exercises such Stock Appreciation Right
provided, however, that the Board or Committee, as applicable, shall determine in its sole and exclusive discretion whether (x) a Participant's leave of absence was an approved leave of absence
and (y) a Participant's service as an Employee shall be considered terminated (as opposed to interrupted) in the case of any leave of absence. 

        (iii) Notwithstanding any provision of this Plan to the contrary, the Board shall have the power and authority to continue vesting through the period
of severance payments or to accelerate the time of
vesting for any Stock Appreciation Right, including in the event of a Participant ceases to be an Employee. 

        (b)   Forfeiture. Unless otherwise provided in the Stock Appreciation Right
Terms and Conditions, if a Participant ceases to be an Employee for any reason before all Stock Appreciation Rights held by such Participant have vested, then the portion of those Stock Appreciation
Rights that have not vested as of the date of such termination of employment shall be forfeited and canceled as of such date. 

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7.     Nonassignability of Stock Appreciation Rights.  

        No Stock Appreciation Right granted under the Plan (or the right to receive Payment pursuant thereto) shall be assignable or transferable in any manner by a
Participant other than by will or the laws of descent and distribution. During the lifetime of a Participant, vested Stock Appreciation Rights held by such Participant shall be exercisable by and
payable only to such Participant or his or her guardian or legal representative. 

8.     Adjustments upon Changes in Stock.  

        (a)   Capitalization Adjustments.

        (i)    In the event of any change in the outstanding shares of Common Stock (or other securities) by which the value of a Stock
Appreciation Right is
measured under the Plan by reason of a stock dividend or split, recapitalization, reclassification, merger or consolidation, reorganization, combination or exchange of shares or other similar
corporate changes or an extraordinary dividend in cash, securities or other property, the Board or the Committee, as applicable, may make such amendments to the Plan and outstanding Stock Appreciation
Rights and may make such adjustments and take such 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 Stock Appreciation Rights (or other securities) then remaining subject to the
Plan, so that upon such adjustment, the number of Stock Appreciation Rights may: (i) in the event of an increase in the number of outstanding shares of Common Stock, be proportionately
increased and the value of each Stock Appreciation Right shall be proportionately reduced; and (ii) in the event of a reduction in the number of outstanding shares of Common Stock, be
proportionately reduced and the value of each Stock Appreciation Right shall be proportionately
increased. No fractional interests will be issued under the Plan resulting from any adjustments. The determination of whether any such adjustments shall be made shall be at the sole discretion of the
Board or the Committee, as applicable. 

        (ii)   The Board or the Committee as applicable shall in its discretion make any further adjustments as it deems necessary to ensure equitable
treatment of any holder of a Stock Appreciation Right as the result of any transaction affecting the shares of Common Stock (or other securities) by which the value of a Stock Appreciation Right is
measured under the Plan not described in Section 8(a)(i), or as is required or authorized under the terms of any applicable Stock Appreciation Right. 

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

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        (b)   Dissolution or Liquidation. In the event of a dissolution or liquidation
of the Company, all outstanding Stock Appreciation Rights held by Participants shall fully vest and become immediately exercisable. 

        (c)   Asset Sale, Merger, Consolidation or Reverse Merger. In the event of
(i) a sale, lease or other disposition of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving corporation; or
(iii) a reverse merger in which the Company is the surviving corporation but the shares of common stock of the Company outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or otherwise, (individually, a "Corporate Transaction"), then (i) any surviving corporation or acquiring corporation may
assume any Stock Appreciation Rights outstanding under the Plan held by Participants who, immediately prior to such Corporate Transaction, are Employees or shall substitute similar awards (including
an award to acquire the same consideration paid to the stockholders in the Corporate Transaction for those outstanding under the Plan) held by Participants who, immediately prior to such Corporate
Transaction, are Employees and (ii) in the event any surviving corporation or acquiring corporation does not assume such Stock Appreciation Rights or to substitute similar awards for those
outstanding under the Plan, such Stock Appreciation Rights shall fully vest and each such Participant shall have the right to exercise such Stock Appreciation Rights. 

9.     Exercise and payment of Stock Appreciation Rights.  

        (a)   General. Each Stock Appreciation Right will entitle the holder to receive
a Payment from the Company on the applicable Exercise Date, subject to the other terms and conditions of the Plan and the applicable Stock Appreciation Rights Terms and Conditions. Such Payment shall
be determined as provided in the applicable Stock Appreciation Rights Terms and Conditions. 

        (b)   Method of Exercise. Each Participant shall exercise his or her Stock
Appreciation Right as provided in the applicable Stock Appreciation Rights Term and Conditions. 

        (c)   Payment; Withholding. The value of a Stock Appreciation Right shall be
payable by the Company in cash. The Company will treat any payments to a Participant upon exercise of a Stock Appreciation Right in the same manner as other cash compensation for services rendered by
the Participant to the Company for purposes of applicable law, including applicable tax and labor laws. Subject to the other terms and conditions of the Plan and the applicable Stock Appreciation
Rights Terms and Conditions, the cash value of Stock Appreciation Rights exercised, less any applicable employee or employer withholding obligation, authorized payroll deductions and any other tax
liability (both employee and employer portions), will be paid to the Participant by the Company as soon as administratively practicable following the Exercise Date. 

        (d)   Other Limitations. The Board may impose such other limits on Stock
Appreciation Rights as it deems advisable in its sole discretion. Any such limits will be specified in the Participant's Stock Appreciation Rights Terms and Conditions. 

10.   Term of the Plan.  

        Stock Appreciation Rights may be granted pursuant to the Plan from time to time within a period of three (3) years from the date on which the Plan is
adopted by the Board. 

11.   Nonexclusivity of the Plan.  

        The adoption of the Plan by the Board shall not be construed as creating any limitations on the power or authority of the Board to adopt such other or additional
incentive or other compensation arrangements of whatever nature as the Board may deem necessary or desirable or preclude or limit the continuation of any other plan, practice or arrangement for the
payment of compensation or fringe 

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benefits
to employees or directors generally, or to any class or group of employees, which the Company now has lawfully put into effect, including, without limitation, any retirement, pension, savings
and stock purchase plan, stock option, insurance, death and disability benefits and executive short-term incentive plans. 

12.   Nature of Payments.  

        (a)   All Stock Appreciation Rights granted shall be in consideration of services performed by the Participant for the Company. 

        (b)   All Stock Appreciation Rights granted shall constitute a special incentive benefit to the Participant and shall not be
taken into account in computing the amount of salary or compensation of the Participant for the purpose of determining any benefits under any pension, retirement, profit-sharing, bonus, life insurance
or other benefit plan of the Company or under any agreement between the Company and the Participant, unless such plan or agreement specifically otherwise provides. 

13.   Nonuniform Determinations.  

        Determinations under this Plan need not be uniform and may be made by the Board or the Committee, as applicable, selectively among persons who receive, or are
eligible to receive, Stock Appreciation Rights (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Board or the Committee as applicable shall be
entitled, among other things, to make nonuniform and selective determinations which, in turn, may reflect the specific terms of individual employment agreements, and to enter into nonuniform and
selective Stock Appreciation Right Agreements. 

14.   Miscellaneous Provisions.  

        (a)   Governing Law. The provisions of the Plan shall be governed by and
interpreted in accordance with the laws of the State of Delaware, without regard to such state's conflicts of law rules. 

        (b)   No Right to Stock Appreciation Right or Employment. No Employee or other
person shall have any claim or right to be granted Stock Appreciation Rights under the Plan. The Plan shall not confer upon any Employee or Participant any right with respect to continuation of
employment, nor shall it interfere in any way with any Participant's right or the Company's or a Subsidiary's right to terminate a Participant's employment at any time. 

        (c)   Cancellation of Stock Appreciation Rights. The Board may cancel Stock
Appreciation Rights with the written consent of the Participants who hold such Stock Appreciation Rights, and, upon any such cancellation, all rights of Participants in respect of such canceled Stock
Appreciation Rights shall terminate and such canceled Stock Appreciation Rights shall be available for further grant under the Plan. 

        (d)   Amendment/Termination of Plan and Outstanding Stock Appreciation Rights.
The Board may at any time amend, suspend or discontinue the Plan, in whole or in part, and the Board may at any time alter or amend any or all Stock Appreciation Rights and the Stock Appreciation
Right Terms and Conditions under the Plan to the extent permitted by law, except that, subject to the provisions of Section 8(a), no such alteration or amendment shall impair the rights of any
holder of a Stock Appreciation Right without the Participant's consent. 

        (e)   Unfunded Plan. The Plan shall be unfunded. No provision of the Plan or
any Stock Appreciation Right 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 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 

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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, under generally applicable law. 

        (f)    No Stockholder's Rights. No Participant or successor in interest shall be
deemed to be a stockholder of the Company, to have any voting rights or have any right to receive any dividends or securities of the Company by virtue of having been granted a Stock Appreciation Right
or redeeming such Stock Appreciation Right. 

        (g)   Invalidity. If any term or provision contained herein or in the Stock
Appreciation Right Terms and Conditions 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. 

15.   Effective Date.  

        The effective date of the Plan is March 12, 2002, the date on which the Plan was adopted by the Board. 

	Attest:	 	 
	

/s/  SHU LI      
	
 	

/s/  MARK S. BECKER      

	Name: Shu Li	 	Name: Mark S. Becker
	Title: President and CEO	 	Title: Secretary
	

Date: March 12, 2002	
 	

 

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Exhibit 10.27

STOCK APPRECIATION RIGHTS PLAN ADOPTED AND EFFECTIVE MARCH 12, 2002QuickLinks
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Exhibit 10.28    
    

        THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
ACT.

 
 

CONEXANT SYSTEMS, INC.    
    
    WARRANT TO PURCHASE COMMON STOCK    
    

	No. CSW-02-1	 	March 12, 2002

        THIS CERTIFIES THAT, for value received, Specialtysemi, Inc., with its principal address at 4311 Jamboree Road in Newport Beach,
California (the "Holder"), is entitled to subscribe for and purchase, at the Exercise Price (defined
below) from Conexant Systems, Inc., with its principal office at 4311 Jamboree
Road in Newport Beach, California (the "Company") Two Million Nine Hundred Thousand (2,900,000) shares
of the Common Stock (as defined below), subject to adjustment as provided herein. 

        1.    DEFINITIONS.    As used herein, the following terms shall have
the following respective meanings: 

        (a)   "Average Price of Post-Distribution Common Stock" shall mean the volume weighted average of the trading price
per share of Common Stock trading on a "regular way" basis as reported on Nasdaq on the first full Nasdaq trading day immediately following the date of the Distribution. 

        (b)   "Average Price of Pre-Distribution Common Stock" shall mean the average of the daily volume weighted average
trading price per share of Common Stock trading on a "regular way" basis (i.e., including the value of the Washington Common Stock to be distributed in respect thereof) as reported on Nasdaq for the
Pre-Distribution Period. 

        (c)   "Average Price of Washington Common Stock" shall mean the Average Price of Pre-Distribution Common Stock
minus the Average Price of Post-Distribution Common Stock. 

        (d)   "Closing Price", with respect to any security on any day, means (i) if such security is listed or admitted for
trading on a national securities exchange, the reported last sales price regular way for such security on such day or, (ii) if not listed or admitted for trading on a national securities
exchange, the last reported sales price for such security on such day as reported by the National Association of Securities Dealers, Inc. Automatic Quotation System—National Market
System or (iii) if not so reported or listed or admitted for trading, the last quoted sales price, or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market on such day as reported by any New York Stock Exchange member firm reasonably selected by the Company for such purpose. 

        (e)   "Common Stock" means (i) the Common Stock, par value $1.00 per share, of the Company, or (ii) any class or
series of stock into which such common stock shall have been changed or any stock resulting from any reclassification of such common stock. 

        (f)    "Conexant Warrant Ratio" shall mean the amount obtained by dividing (a) the Average Price of
Post-Distribution Common Stock by (b) the Average Price of Pre-Distribution Common Stock. 

1

 

        (g)   "Exercise Period" shall mean the period commencing on September 11, 2002 and ending on the date that is
20 days after the earlier of (i) December 31, 2004 and (ii) the date on which a Termination Event (as defined below) occurs. 

        (h)   "Exercise Price" shall mean $13.05 per share, subject to adjustment pursuant to Section 5 below. 

        (i)    "Exercise Shares" shall mean the shares of the Common Stock issuable upon exercise of this Warrant. 

        (j)    "Fair Market Value" means the fair market of the asset, property or security in question, as determined in good faith by
the Board of Directors of the Company; provided, however, that the fair market value of any security for which a Closing Price is available shall be the
Market Price of such security. 

        (k)   "Market Price" with respect to any security on any day means the average of the daily Closing Prices of a share or unit
of such security for the 15 consecutive trading days ending on the most recent trading day for which a Closing Price is available; provided, however,
that in the event that, in the case of Common Stock, the Market Price is determined during a period following the announcement by the Company of (A) a dividend or distribution of Common Stock,
or (B) any subdivision, combination or reclassification of Common Stock, or the record date for such subdivision, combination or reclassification, then, and in each such case, the Market Price
shall be appropriately adjusted to reflect the current market price per share equivalent of Common Stock. 

        (l)    "Nasdaq" shall mean The Nasdaq Stock Market, Inc. 

        (m)  "Post-Distribution Conexant Warrant Spread" shall mean, with respect to this Warrant as adjusted pursuant to
Section 5(h), the product of (i) the Average Price of Post-Distribution Common Stock minus the per share exercise price of such adjusted Warrant (determined in accordance
with the provisions of Section 5(h)(i), without giving effect to the provisions of Section 5(h)(ii)), multiplied by (ii) the number of shares of Common Stock subject to such
adjusted Warrant (determined in accordance with the provisions of Section 5(h)(i), without giving effect to the provisions of Section 5(h)(ii)). 

        (n)   "Pre-Distribution Conexant Warrant Spread" shall mean, with respect to this Warrant (prior to its being
adjusted pursuant to Section 5(h)), (a) the Average Price of Pre-Distribution Common Stock minus the per share exercise price of such unadjusted Warrant, multiplied by
(b) the number of shares of Common Stock subject to such unadjusted Warrant. 

        (o)   "Pre-Distribution Period" shall mean the three consecutive full Nasdaq trading days ending on and including
the date of the Distribution. 

        (p)   "Time of Distribution" shall mean 11:58 p.m. Eastern Time on the date of the Distribution. 

        (q)   "Washington Warrant Ratio" shall mean the amount obtained by dividing (i) the Average Price of Washington Common
Stock by (ii) the Average Price of Pre-Distribution Common Stock. 

        (r)   "Washington Warrant Spread" shall mean (a) with respect to the Washington Warrant received by Holder pursuant to
Section 5(d), the Pre-Distribution Conexant Warrant Spread minus the Post-Distribution Conexant Warrant Spread. 

        2.    EXERCISE OF WARRANT.    

        (a)   The rights represented by this Warrant may be exercised at any time and from time to time during the Exercise Period (in
whole or in part) according to the schedule set forth in 

2

 

Section 2(b)
below, by delivery of the following to the Company at its address set forth above (or at such other address as it may designate by notice in writing to the Holder): 

          (i)  An executed Notice of Exercise in the form attached hereto; 

         (ii)  Payment of the Exercise Price with respect to the number of shares of Common Stock for which this Warrant is then being
exercised, which payment shall be made (at the option of the Holder) (A) in cash or by wire transfer of immediately available funds (B) by delivery of a notice to the Company that the
Holder is exercising this Warrant by authorizing the Company to reduce the number of shares of Common Stock subject to this Warrant by that number of shares of Common Stock having a Fair Market Value
equal to the aggregate Exercise Price then payable for the shares of Common Stock for which this Warrant is then being exercised; and 

       (iii)  This Warrant. 

        (b)   This Warrant shall be exercisable as follows: 

          (i)  This Warrant may be exercised with respect to one-fourth (1/4) of the Exercise Shares at any
time during the Exercise Period; 

         (ii)  This Warrant may be exercised with respect to an additional one-fourth (1/4) of the Exercise
Shares at any time after March 11, 2003 (which Exercise Shares shall be in addition to that number of shares that may be issued upon exercise of this Warrant pursuant to clause (i) of
this Section 2(b)); 

       (iii)  This Warrant may be exercised with respect to an additional one-fourth (1/4) of the Exercise
Shares at any time after September 11, 2003 (which Exercise Shares shall be in addition to that number of shares issuable upon exercise of this Warrant pursuant to clauses (i) and
(ii) of this Section 2(b)); and 

        (iv)  This Warrant may be exercised with respect to an additional one-fourth (1/4) of the Exercise
Shares at any time after March 11, 2004 (which Exercise Shares shall be in addition to that number of shares issuable upon exercise of this Warrant pursuant to clauses (i), (ii) and
(iii) of this Section 2(b)); 

provided, however, that this Warrant shall become exercisable with respect to all of the Exercise Shares immediately prior to the closing of a
Termination Event. For purposes of this Warrant, "Termination Event" shall mean any transaction, occurrence or event where, in connection therewith, Stock Appreciation Rights granted under the Stock
Appreciation Rights Plan of Holder dated as of March 12, 2002 (the "SAR Plan") become fully vested and exercisable pursuant to such plan. 

        (c)   Upon the exercise of the rights represented by this Warrant, a certificate or certificates for the Exercise Shares so
purchased, registered in the name of the Holder shall be issued and delivered to the Holder within a reasonable time after the rights represented by this Warrant shall have been so exercised but in
any event within ten (10) business days. If this Warrant shall have been exercised only in part, the Company shall, at the time of delivery of such certificate or certificates, deliver to the
Holder a new Warrant evidencing the right to purchase the remaining shares of Common Stock called for by this Warrant, which new Warrant shall in all other respects be identical to this Warrant. 

        (d)   The Holder shall be deemed to have become the holder of record of the Exercise Shares to be issued upon any exercise of
this Warrant on the date on which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such certificate or certificates, except that, if the
date of such surrender and payment is a date when the stock 

3

 

transfer
books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books
are open. 

        (e)   The Company shall pay and solely be responsible for any and all costs, fees, commissions or other payments payable or
otherwise accruing in connection with the exercise of this Warrant. The Company shall pay and solely be responsible for any and all costs, fees, commissions or other payments payable or otherwise
accruing in connection with the subsequent sale or transfer of Exercise Shares. 

        3.    COVENANTS OF THE COMPANY.    

        3.1    Covenants as to Exercise Shares.    

        The
Company covenants and agrees that all Exercise Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and
outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. The Company further covenants and agrees that the Company will at all times
during the Exercise Period have authorized and reserved, free from preemptive rights, a sufficient number of shares of its Common Stock to provide for the exercise of the rights represented by this
Warrant. 

        3.2    No Impairment.    Except and to the extent as waived or
consented to by the Holder, 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 voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in
good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order to protect the exercise rights of the
Holder against impairment. 

        3.3    Notices of Record Date.    In the event of any taking by the
Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same
as cash dividends paid in previous quarters) or other distribution, the Company shall mail to the Holder, at least five (5) days prior to the date on which any such record is to be taken for
the purpose of such dividend or distribution, a notice thereof. 

        3.4    Registration of Exercise Shares.    The Exercise Shares shall
be registered by the Company pursuant to the Registration Rights Provisions attached hereto as Exhibit A. The terms of Exhibit A constitute a legally and enforceable agreement between
the Company and the Holder. 

        3.5    Disposition of Warrant and Exercise Shares.    

        (a)   The Holder agrees not to make any disposition of all or any part of the Warrant or Exercise Shares in any event unless
and until: 

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

         (ii)  There is then in effect a registration statement under the 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 the shares to be issued to the Holder may bear the
following legend: 

        THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS  

4

 

 TO THE SECURITIES UNDER THE ACT OR AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT.

        Such
legend shall be removed by the Company at the request of the Holder in connection with any sale pursuant to an effective registration statement under the Securities Act or pursuant
to a valid exemption from the Registration Requirements of the Act. 

        4.    [RESERVED].    

        5.    ADJUSTMENT OF EXERCISE SHARES AND EXERCISE PRICE.    

        (a)   If the Company shall after the date of issuance of this Warrant subdivide its outstanding shares of Common Stock into a
greater number of shares or consolidate its outstanding shares of Common Stock into a smaller number of shares (any such event being called a "Common Stock Reorganization"), then (a) the
Exercise Price shall be adjusted, effective immediately after the record date at which the holders of shares of Common Stock are determined for purposes of such Common Stock Reorganization, to a price
determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding on such
record date before giving effect to such Common Stock Reorganization and the denominator of which shall be the number of shares of Common Stock outstanding after giving effect to such Common Stock
Reorganization, and (b) the number of shares of Common Stock subject to purchase upon exercise of this Warrant shall be adjusted, effective at such time, to a number determined by multiplying
the number of shares of Common Stock subject to purchase upon exercise in full of this Warrant immediately before such Common Stock Reorganization by a fraction, the numerator of which shall be the
number of shares of Common Stock outstanding after giving effect to such Common Stock Reorganization and the denominator of which shall be the number of shares of Common Stock outstanding immediately
before such Common Stock Reorganization. 

        (b)   If the Company shall after the date of issuance of this Warrant issue or distribute to all or substantially all holders
of shares of Common Stock, any securities of the Company or another entity, and if such issuance or distribution does not constitute a Common Stock Reorganization (any such event being herein called a
"Dividend"), the Company shall make appropriate provision so that the Holder will receive upon exercise of the Warrant the number and kind of securities of the Company or such other entity which such
Holder would have received if this Warrant had been exercised immediately prior to the record date for such Dividend (providing for subsequent adjustments with respect to any securities distributed in
connection with such Dividend equivalent to the adjustments provided for in this Section 5 as a result of events occurring subsequent to the effective date of such Dividend). 

        (c)   If, after the date of issuance of this Warrant there shall be any consolidation or merger to which the Company is a
party, other than a consolidation or a merger in which the Company is a continuing corporation and which does not result in any reclassification of, or change (other than a Common Stock Reorganization
or a change in par value), in, outstanding shares of Common Stock, or any sale or conveyance of the property of the Company as an entirety or substantially as an entirety (any such event being called
a "Capital Reorganization"), then, effective 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 such 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 

5

 

securities,
cash or other property receivable upon such Capital Reorganization. The provisions of this Section 5 shall similarly apply to successive Capital Reorganizations. 

        (d)   If any event occurs after the date of issuance of this Warrant as to which the foregoing provisions of this
Section 5 are not strictly applicable or, if strictly applicable, would not, fairly protect the purchase rights of the Warrants in accordance with the essential intent and principles of such
provisions, then the Board of Directors of the Company shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be
reasonably necessary to protect such purchase rights as aforesaid, but in no event shall any such adjustment have the effect of increasing the Exercise Price or decreasing the number of shares of
Common Stock subject to purchase upon exercise of this Warrant, or otherwise adversely affect the Holders. 

        (e)   Any adjustments pursuant to this Section 5 shall be made successively whenever an event referred to herein shall
occur. 

        (f)    Not less than 10 nor more than 60 days prior to the record date or effective date, as the case may be, of any
action which would require an adjustment or readjustment pursuant to this Section 5, the Company shall give notice to the Holder of such event, describing such event in reasonable detail and
specifying the record date or effective date, as the case may be, and, if determinable, the required adjustment and the computation thereof. If the required adjustment is not determinable at the time
of such notice, the Company shall give notice to each Holder of such adjustment and computation promptly after such adjustment becomes determinable 

        (g)   Notwithstanding the foregoing, subject to the approval of the Board of Directors of Alpha Industries, Inc.
("Alpha") and Alpha's approval of the terms and conditions set forth below (collectively, the "Alpha
Approval"), and in lieu of any adjustments under Sections 5(a) through 5(f) above, this Warrant will be adjusted in connection with the distribution (the  "Distribution") by the Company to the holders of Common Stock of all of the issued and outstanding shares of Common Stock, par value $.01
per share ("Washington Common Stock"), of Washington Sub, Inc.
("Washington") in accordance with Sections 5(h) and 5(i) below. Notwithstanding anything herein to the contrary, in the event the Alpha Approval
is not received by the Company prior to the Distribution, no adjustment to this Warrant or the Exercise Shares shall be made in connection with or as a result of the Distribution. 

        (h)   The number of shares of Common Stock subject to the Warrant as so adjusted and the per-share exercise price
of such adjusted Warrant will be determined as follows: 

          (i)  the Exercise Price of this Warrant will equal the per share exercise price of the Warrant immediately prior to the Time
of Distribution and prior to such adjustment, multiplied by the Conexant Warrant Ratio, rounded up to the nearest hundredth of a cent. The number of
shares of Common Stock subject to the adjusted Warrant will equal the number of shares subject to such Warrant immediately prior to the Time of Distribution; 

         (ii)  Notwithstanding the foregoing, if the per share exercise price of such adjusted Warrant determined in accordance with
paragraph (c)(i) above results in a price of less than $1.00, the per share exercise price of such adjusted Warrant will be $1.00 and the number of shares subject to such adjusted
Warrant will equal the (i) the Post-Distribution Conexant Warrant Spread divided by (ii) the Average Price of
Post-Distribution Common Stock, minus $1.00, and, if any resultant fractional share of Common Stock exists, rounded down to the nearest
whole share, without any payment for such fractional share. 

The
adjusted Warrant will otherwise have the same terms and conditions (including without limitation those set forth on Exhibit A) as those in effect immediately prior to the adjustment. 

6

 

        (i)    Holder will also receive a warrant issued by Washington (the "Washington
Warrant") on the terms described in this Section 5(i). The number of shares of common stock of Washington (the "Washington Common
Stock") subject to such Washington Warrant and the per-share exercise price of such Washington Warrant will be determined as follows: 

          (i)  The Washington Warrant will have a per share exercise price equal to the per share exercise price of this Warrant
immediately prior to the Time of Distribution (before the adjustment contemplated by Section 5(h)), multiplied by the Washington Warrant Ratio,
rounded up to the nearest hundredth of a cent. The number of shares of Washington Common Stock subject to the Washington Option will equal the quotient of (i) the Washington Warrant Spread  divided by (ii) the Average Price of Washington Common Stock minus the per share exercise price
of such Washington Warrant (as determined pursuant to the preceding sentence), and, if any resultant fractional share of Washington Common Stock exists, rounded down to the nearest whole share,
without any payment for such fractional share;  provided, however, if either the Washington Warrant Spread or the excess of the Average Price of Washington Common Stock over the per share exercise
price of the Washington Warrant is equal to or less than zero dollars ($0), then the number of shares of Washington Common Stock subject to the Washington Warrant will equal the number of shares
subject to this Warrant immediately prior to the Time of Distribution (before the adjustment contemplated by Section 5(h)). 

         (ii)  Notwithstanding the foregoing, if the per share exercise price of such Washington Warrant determined in accordance with
paragraph (a) above results in a price of less than $.09, the per share exercise price of such Washington Warrant will be $.09 and the number of shares subject to such Washington Warrant will
equal (i) the Washington Warrant Spread divided by (ii) the Average Price of Washington Common Stock minus  $.09, and, if any resultant fractional
share of Washington Common Stock exists, rounded down to the nearest whole share, without any payment for such fractional share;  provided, however, if the Washington Warrant Spread equals zero dollars
($0), then the number of shares of Washington Common Stock subject to the
Washington Warrant will equal the number of shares subject to this Warrant immediately prior to the Time of Distribution (before the adjustment contemplated by Section 5(h)). 

Each
such Washington Warrant will otherwise have the same terms and conditions as this Warrant (including without limitation those set forth on Exhibit A), except that references to the Company
will be changed to refer to Washington and the Washington Warrant will not provide for the adjustments described in Sections 5(g) through 5(j). 

        (j)    Notwithstanding the foregoing, in lieu of any adjustments under Sections 5(a) through 5(f) above, in connection with the
Company's separation of its Mindspeed Technologies business as an independent public company, the number of shares remaining unexercised under the Warrant and the Exercise Price shall be further
adjusted, and such additional warrants to purchase stock of Mindspeed Technologies will be issued, in a manner substantially similar to the adjustments made in such transaction to certain outstanding
options to purchase Common Stock under the Company's employee stock option plans, which adjustments, if any, provide for holders of such outstanding options to receive, in addition, options to
purchase stock of Mindspeed Technologies. The adjusted Warrant and any Mindspeed Technologies Warrants will otherwise have the same terms and conditions (including without limitation those set forth
on Exhibit A) as those in effect hereunder immediately prior to such adjustment, except that, with respect to the Mindspeed Technologies Warrants, references to the Company will be changed to
refer to Mindspeed Technologies and the Mindspeed Technologies Warrants will not provide for the adjustments described in Section 5(g) through 5(j). 

7

 

        6.    FRACTIONAL SHARES.    No fractional shares shall be issued upon
the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of
determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in
lieu of issuance of any fractional share, pay the
Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current Fair Market Value of an Exercise Share by such fraction. 

        7.    NO STOCKHOLDER RIGHTS.    This Warrant in and of itself shall
not entitle the Holder to any voting rights or other rights as a stockholder of the Company. 

        8.    TRANSFER OF WARRANT, EXERCISE SHARES.    This Warrant and all
rights hereunder may not be transferred by Holder other than to a Permitted Transferee (defined below). Without limiting the generality of the foregoing, Holder shall not sell, dispose of, transfer,
make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction relating to, this Warrant and/or, prior to the issuance thereof upon the exercise of this
Warrant pursuant to Section 2 above, any Exercise Shares. For purposes of this Warrant, "Permitted Transferee"shall mean any surviving
corporation or entity or acquiring corporation or entity of Holder that, in connection with a Corporate Transaction (as defined in the SAR Plan) (i) may assume Stock Appreciation Rights
outstanding under the SAR Plan as provided in Section 8 thereof and (ii) agrees in writing to assume such outstanding Stock Appreciation Rights. 

        9.    LOST, STOLEN, MUTILATED OR DESTROYED WARRANT.    If this Warrant
is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the Company,
whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone. 

        10.    NOTICES, ETC.    All notices and other communications required
or permitted hereunder shall be in writing and shall be sent by telex, telegram, express mail or other form of rapid communications, if possible, and if not then such notice or communication shall be
mailed by first-class mail, postage prepaid, addressed in each case to the party entitled thereto at the following addresses: (a) if to the Company, to Conexant Systems, Inc. at 4311
Jamboree Road, Newport Beach, California 92660 and (b) if to the Holder, to Specialtysemi, Inc., at 4311 Jamboree Road, Newport Beach, California 92660, or at such other address as one
party may furnish to the other in writing, with a copy to Latham & Watkins, 555 11thStreet, N.W., Washington, D.C. 20004, Attention: Daniel T. Lennon. Notice shall be deemed
effective on the date dispatched if by personal delivery, telecopy, telex or telegram, two days after mailing if by express mail, or three days after mailing if by first-class mail. 

        11.    ACCEPTANCE.    Receipt of this Warrant by the Holder shall
constitute acceptance of and agreement to all of the terms and conditions contained herein. 

        12.    GOVERNING LAW.    This Warrant and all rights, obligations and
liabilities hereunder shall be governed by the laws of the State of Delaware. 

8

 

        IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer effective as of March 12,
2002. 

	 	 	 	 	CONEXANT SYSTEMS, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  DWIGHT DECKER      

	 	 	 	 	Name:	 	Dwight Decker

	 	 	 	 	Title:	 	Chief Executive Officer

	Acknowledged and Accepted:	 	 	 	 
	
SPECIALTYSEMI, INC.	
 	

 	
 	

 
	

By:	
 	

/s/  CLAUDIUS E. WATTS IV      
	
 	

 	
 	

 
	Name:	 	Claudius E. Watts IV
	 	 	 	 
	Title:	 	President
	 	 	 	 

9

   NOTICE OF EXERCISE  

TO: CONEXANT SYSTEMS, INC.  

        (1)   The
undersigned hereby elects to purchase            shares of the Common Stock of CONEXANT SYSTEMS, INC. (the  "Company") pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise
price in full, together with all applicable transfer taxes, if any. 

        (2)   Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below: 

	 	 	 
	 	 	 
	
 (Name)	 	 
	

	
 	

 
	

 (Address)	
 	

 
	

 (Date)	
 	

 (Signature)
	

 	
 	

 (Print name)

1

   EXHIBIT A  

 REGISTRATION OF EXERCISE SHARES  

SECTION 1. GENERAL.  

        1.1    Definitions.    Capitalized terms used but not otherwise
defined in this Exhibit A shall have the meaning given such terms in the Warrant to Purchase Common Stock to which this Exhibit A is attached. Notwithstanding the foregoing, as used in
this Exhibit A the following terms shall have the following respective meanings: 

        (a)   "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (b)   "Holder" shall mean Specialtysemi, Inc., a Delaware corporation, or any Permitted
Transferee. 

        (c)   "Register," "registered," and "registration" refer to a registration effected by preparing and
filing a registration statement in compliance with the Securities Act with the SEC, and the declaration or ordering of effectiveness by the SEC of such registration statement or document. 

        (d)   "Registrable Securities" means the Exercise Shares. Notwithstanding the foregoing, Registrable
Securities shall not include any securities sold by the Holder to the public either pursuant to a registration statement or Rule 144 under the Securities Act or sold in a private transaction. 

        (e)   "Registration Expenses" shall mean all expenses incurred by the Company in complying with
Section 2.1 hereof, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses and the
expense of any special audits incident to or required by any such registration (but excluding Selling Expenses and the compensation of regular employees of the Company which shall be paid in any event
by the Company). 

        (f)    "SEC" means the Securities and Exchange Commission. 

        (g)   "Securities Act" shall mean the Securities Act of 1933, as amended. 

        (h)   "Selling Expenses" shall mean all selling commissions, underwriters' discounts and other expenses
incurred by the Holder, if any, applicable to the sale of Registrable Securities. 

SECTION 2. REGISTRATION.  

        2.1    Shelf Registration    

        (a)   The Company shall, at its cost, prepare and, no later than 60 days after the date on which the Warrant is issued,
file with the SEC, and thereafter use commercially reasonable efforts to cause to be declared effective as soon as practicable, a registration statement on Form S-3 or such other
form as the Company may be permitted to use (the "Shelf Registration Statement") relating to the offer and sale of the Registrable Securities by the
Holder thereof from time to time in accordance with the methods of distribution set forth in the Shelf Registration Statement and Rule 415 under the Securities Act (hereinafter, the
"Shelf Registration"). 

        (b)   Subject to the terms and conditions set forth herein, the Company shall use commercially reasonable efforts to keep the
Shelf Registration Statement continuously effective in order to permit the prospectus included therein (the "Prospectus") to be lawfully delivered by
the Holder, until the earlier of (A) twenty (20) days after December 31, 2004, (B) the date that is twenty (20) days following a Termination Event, or
(C) when all the Securities covered by the Shelf Registration Statement have been sold pursuant thereto (in any such case, such period being called the "Shelf
Registration Period"). Notwithstanding any other provision of this Exhibit A, the Holder 

1

 

understands
that there may be periods during which the Company's Board of Directors may determine, in good faith, that it is in the best interest of the Company and its stockholders to defer
disclosure of non-public information until such information has reached a more advanced stage and that during such periods sales of Registrable Securities and the effectiveness of the
Shelf Registration Statement may be suspended or delayed. The Holder agrees that upon receipt of any written notice from the Company of the development of any non-public information and
advising the Holder to discontinue the Holder's disposition of Registrable Securities pursuant to the Shelf Registration Statement, the Holder will forthwith discontinue the Holder's disposition of
Registrable Securities pursuant to the Shelf Registration Statement until the Holder's receipt of copies of an appropriately supplemented or amended Prospectus and written notice from the Company
advising the Holder that it may resume sales and dispositions of Registrable Securities pursuant to the Shelf Registration Statement. In the event the Company shall give any such notice, the Shelf
Registration Period shall be extended by the number of days during the period from and including the date of the giving of such notice to and including the date when the Holder shall have received the
copies of the appropriate supplemented or amended Prospectus. 

        2.2    Expenses of Registration.    Except as specifically provided
herein, all Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to Section 2.1 herein shall be borne by the Company. All Selling Expenses
incurred in connection with any registration hereunder shall be borne by the Holder. In connection with any such registration, the Company shall reimburse the Holders of Registration Securities for
the fees and disbursements of one counsel to the Holders of Registrable Securities related to such counsel's review of any registration statement and assistance in connection with any sale pursuant
thereto. 

        2.3    Obligations of the Company.    In connection with the Shelf
Registration contemplated by Section 2.1 above, the Company shall: 

        (a)   Upon effectiveness of the Shelf Registration Statement, furnish to the Holder such number of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as the Holder may reasonably request in order to facilitate the disposition of
Registrable Securities owned by it. 

        (b)   Notify the Holder at any time when, to the knowledge of the Company, a prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing.
Upon the occurrence of any such event, the Company will use commercially reasonable efforts to amend or supplement such prospectus in order to cause such prospectus not to include any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. 

        (c)   Promptly notify the Holder in writing, 

        (1)   when
the Prospectus or any supplemental or post-effective amendment has been filed, and, with respect to the Registration Statement or any
post-effective amendment, when the same has become effective, 

        (2)   of
any request by the SEC for amendments or supplements to the Registration Statement or the Prospectus or for additional information, 

        (3)   of
the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose, and 

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        (4)   of
the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose. 

        (d)   Furnish to the Holder, without charge, at least one copy of the Registration Statement, as first filed with the SEC, and
of each amendment thereto, including all documents incorporated by reference therein and all exhibits (including exhibits incorporated therein by reference); 

        (e)   Cooperate with the Holder to facilitate the timely preparation and delivery of certificates not bearing any restrictive
legends representing Registrable Securities properly sold under the Registration Statement and cause such Registrable Securities to be in such denominations and registered in such names as the Holder
may reasonably request; 

        (f)    Cause all Registrable Securities covered by the Registration Statement to be admitted for quotation on the National
Association of Securities Dealers Automated Quotation System—National
Market System and listed on any stock exchange that the Common Stock of the Company in then listed; 

        2.4    Termination of Registration Rights.    All registration rights
granted under this Section 2 shall terminate and be of no further force and effect upon the expiration of the Shelf Registration Period. 

        2.5    Delay of Registration; Furnishing Information.    

        (a)   The Holder shall have no right to obtain or seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2. 

        (b)   It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 2.1
that the Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of such securities as shall reasonably be
requested by the Company to effect the registration of the Registrable Securities. 

        2.6    Indemnification.    

        (a)   To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, officers and
directors of the Holder and each person, if any, who controls such Holder within the meaning of the Securities Act or the Exchange Act, against any losses, costs, expenses, claims, damages, or
liabilities (joint or several) to which they may become subject, insofar as such losses, costs, expenses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon
any of the following statements, omissions or violations (collectively a "Violation") by the Company: (i) any untrue statement or alleged untrue
statement of a material fact contained in the Shelf Registration Statement or incorporated by reference therein, including any preliminary Prospectus or final Prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not
misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any state securities law in connection with the offering covered by the Shelf Registration Statement; and the Company will reimburse the Holder, and each such
partner, officer, director or controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or
action; provided however, that the indemnity agreement contained in this Section 2.6(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the 

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Company
be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection with such registration by the Holder or any partner, officer, director or controlling person of the Holder. 

        (b)   To the extent permitted by law, each Holder will indemnify and hold harmless the Company, each of its directors, its
officers and each person, if any, who controls the Company within the meaning of the Securities Act against any losses, claims, damages or liabilities (joint or several) to which the Company or any
such director, officer, controlling person may become subject, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by the Holder under an instrument duly executed by the
Holder and stated to be specifically for use in connection with such registration; and each the Holder will reimburse any legal or other expenses reasonably incurred by any person intended to be
indemnified pursuant to this Section 2.6(b) in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially determined that there was such a
Violation; provided, however, that the indemnity agreement contained in this Section 2.6(b) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided
further, that in no event shall any indemnity under this Section 2.6 exceed the net proceeds from the offering received by the Holder, except in the case of willful
misrepresentation or fraud by the Holder. 

        (c)   Promptly after receipt by an indemnified party under this Section 2.6 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.6, deliver to the indemnifying
party a written notice of the commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to
the parties; provided, however, that an indemnified party (together with all indemnified parties that may be represented without conflict by a single
counsel) shall have the right to retain one counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The
failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if materially prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under this Section 2.6, but the omission so to deliver written notice to the indemnifying party will not relieve it of
any liability that it may have to any indemnified party otherwise than under this Section 2.6. 

        (d)   If the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall to the extent permitted by applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) that resulted in such loss, claim,
damage or liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying 

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party
or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission;  provided, that in no event shall any
contribution by a Holder hereunder exceed the net proceeds from the offering received by the Holder, except in the
case of willful misrepresentation or fraud by the Holder. 

        (e)   The obligations of the Company and Holder under this Section 2.6 shall survive completion of any offering of
Registrable Securities in the Shelf Registration Statement and the termination of the provisions set forth in this Exhibit A. No indemnifying party, in the defense of any such claim or
litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. 

        2.7    No Assignment of Registration Rights.    The rights to cause
the Company to register Registrable Securities pursuant to this Section 2 may not be assigned by the Holder to any person or entity, other than a Permitted Transferee, without the prior written
consent of the Company. 

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QuickLinks

Exhibit 10.28

CONEXANT SYSTEMS, INC. WARRANT TO PURCHASE COMMON STOCK

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