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                                                                    EXHIBIT 10.4

                      1997 KEY EMPLOYEES' STOCK OPTION PLAN

                                       OF

                             RF MICRO DEVICES, INC.

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                      1997 KEY EMPLOYEES' STOCK OPTION PLAN
                                       OF
                             RF MICRO DEVICES, INC.

1.      PURPOSE

        The purpose of the 1997 Key Employees' Stock Option Plan of RF Micro
Devices, Inc. (the "Plan") is to encourage and enable selected key employees and
independent contractors in the service of RF Micro Devices, Inc. (the
"Corporation") or its related corporations to acquire or to increase their
holdings of common stock of the Corporation (the "Common Stock") in order to
promote a closer identification of their interests with those of the Corporation
and its shareholders, thereby further stimulating their efforts to enhance the
efficiency, soundness, profitability, growth and shareholder value of the
Corporation. This purpose will be carried out through the granting of incentive
stock options ("Incentive Options") intended to qualify under Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"), and nonqualified stock
options ("Nonqualified Options"). Incentive Options and Nonqualified Options
shall be referred to herein collectively as "Options." To the extent that any
Option is designated as an Incentive Option and such option does not qualify as
an Incentive Option, it shall constitute a Nonqualified Option.

2.      ADMINISTRATION OF THE PLAN

                (a) The Plan shall be administered by a committee (the
        "Committee") appointed by the Board of Directors of the Corporation (the
        "Board") and comprised solely of members of the Board. The Committee
        shall include no fewer than the minimum number of "non-employee
        directors," as such term is defined in Rule 16b-3 promulgated under the
        Securities Exchange Act of 1934, as amended (the "Exchange Act"), as may
        be required by Rule 16b-3 or any successor rule.

                (b) Any action of the Committee may be taken by a written
        instrument signed by all of the members of the Committee and any action
        so taken by written consent shall be as fully effective as if it had
        been taken by a majority of the members at a meeting duly held and
        called. Subject to the provisions of the Plan, the Committee shall have
        full and final authority, in its discretion, to take any action with
        respect to the Plan including, without limitation, the following: (i) to
        determine the individuals to receive Options, the nature of each Option
        as an Incentive Option or a Nonqualified Option, the times when Options
        shall be granted, the number of shares to be subject to each Option, the
        Option price (determined in accordance with Section 6), the Option
        period, the time or times when each Option shall be exercisable and the
        other terms, conditions, restrictions and limitations of an Option; (ii)
        to prescribe the form or forms of the agreements evidencing any Options
        granted under the Plan; (iii) to establish, amend and rescind rules and
        regulations for the administration of the Plan; and (iv) to construe and
        interpret the Plan, the rules and regulations, and the agreements
        evidencing Options granted under the Plan, and to make all other
        determinations deemed necessary or advisable for administering the Plan.
        In addition, the Committee shall have complete authority, in its
        discretion, to accelerate the date that any Option which is not
        otherwise exercisable shall become exercisable in whole

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        or in part, without any obligation to accelerate such date with respect
        to any other Option granted to any person.

                (c) Notwithstanding Section 2(b), and subject to the terms of
        the Plan herein, the Committee may delegate from time to time to the
        Chief Executive Officer of the Corporation the authority to grant
        Options, and to make any or all of the determinations reserved for the
        Committee in the Plan and summarized in Section 2(b) with respect to
        Options that have been granted, to any individual who, at the time of
        such grant or other determination, (i) is not an officer or director of
        the Corporation subject to Section 16 of the Exchange Act and (ii) is
        otherwise eligible to participate in the Plan under Section 5. The Chief
        Executive Officer of the Corporation shall report to the Committee, not
        less than quarterly, the material terms of all Options granted since the
        time of any such immediately preceding report pursuant to authority
        delegated pursuant to this Section 2(c).

3.      EFFECTIVE DATE

        The effective date of the Plan shall be the date of consummation of an
initial public offering (the "Public Offering Date"). Options may be granted
under the Plan on and after the effective date, but not after the tenth
anniversary of the Public Offering Date. For the purposes herein, the phrase
"consummation of an initial public offering" shall mean the closing of a firm
commitment underwritten public offering of the Corporation's Common Stock
pursuant to a registration statement on Form S-1 filed under the Securities Act
of 1933, as amended (the "Securities Act").

4.      OPTIONS; SHARES OF STOCK SUBJECT TO THE PLAN

        Both Incentive Options and Nonqualified Options, as designated by the
Committee, may be granted under the Plan. The shares of Common Stock that may be
issued and sold pursuant to Options shall not exceed in the aggregate 1,300,000
shares of authorized but unissued shares of the Common Stock of the Corporation.
The Corporation hereby reserves sufficient authorized shares of Common Stock to
provide for the exercise of Options granted hereunder. Any shares of Common
Stock subject to an Option which, for any reason, expires or is terminated
unexercised as to such shares may again be subject to an Option granted under
the Plan. No Optionee may be granted Options in any calendar year for more than
500,000 shares of Common Stock.

5.      ELIGIBILITY

        An Option may be granted only to an individual who satisfies the
following eligibility requirements on the date the Option is granted:

                (a) The individual is either (i) a key employee of the
        Corporation or a related corporation or (ii) an independent contractor
        providing services to the Corporation or a related corporation. For this
        purpose, an individual shall be considered to be an "employee" only if
        there exists between the individual and the Corporation or a related
        corporation the legal and bona fide relationship of employer and
        employee. In determining whether such a relationship exists, the
        regulations of the United States Treasury Department relating to the
        determination

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        of the employment relationship for the purpose of collection of income
        tax on wages at the source shall be applied.

                        Also, for this purpose, a "key employee" is an employee
        of the Corporation or a related corporation whom the Committee
        determines qualifies as a key employee based on the nature and extent of
        such employee's duties, responsibilities, personal capabilities,
        performance and potential, or any combination of such factors.

                (b) With respect to the grant of an Incentive Option, the
        individual is an employee who does not own, immediately before the time
        that the Incentive Option is granted, stock possessing more than ten
        percent of the total combined voting power of all classes of stock of
        the Corporation or a related corporation; provided, that an individual
        owning more than ten percent of the total combined voting power of all
        classes of stock of the Corporation or a related corporation may be
        granted an Incentive Option if the price at which such Option may be
        exercised is greater than or equal to 110% of the fair market value of
        the shares on the date the Option is granted and the Option period does
        not exceed five years. For this purpose, an individual will be deemed to
        own stock which is attributed to him under Section 424(d) of the Code.

                (c) The individual, being otherwise eligible under this Section
        5, is selected by the Committee as an individual to whom an Option shall
        be granted (an "Optionee").

6.      OPTION PRICE

        The price per share at which an Option may be exercised (the "Option
price") shall be established by the Committee at the time the Option is granted
and shall be set forth in the terms of the agreement evidencing the grant of the
Option; provided, that in the case of an Incentive Option, the Option price
shall be equal to or greater than the fair market value per share of the Common
Stock on the date the Option is granted. In addition, the following rules shall
apply:

                (a) An Incentive Option shall be considered to be granted on the
        date that the Committee acts to grant the Option, or on any later date
        specified by the Committee as the date of grant of the Option. A
        Nonqualified Option shall be considered to be granted on the date the
        Committee acts to grant the Option or any other date specified by the
        Committee as the date of grant of the Option.

                (b) The fair market value of the shares shall be determined in
        good faith by the Committee in accordance with the following provisions:
        (i) if the shares of Common Stock are listed for trading on the New York
        Stock Exchange or the American Stock Exchange or included in The Nasdaq
        National Market, the fair market value shall be the closing sales price
        of the shares on the New York Stock Exchange or the American Stock
        Exchange or as reported in The Nasdaq National Market (as applicable) on
        the date immediately preceding the date the Option is granted, or, if
        there is no transaction on such date, then on the trading date nearest
        preceding the date the Option is granted for which closing price
        information is available, and, provided further, if the shares are
        quoted on The Nasdaq System but are not included in The Nasdaq

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        National Market, the fair market value shall be the mean between the
        high bid and low asked quotations in The Nasdaq System on the date
        immediately preceding the date the Option is granted for which such
        information is available; or (ii) if the shares of Common Stock are not
        listed or reported in any of the foregoing, then fair market value shall
        be determined by the Committee in accordance with the applicable
        provisions of Section 20.2031-2 of the Federal Estate Tax Regulations,
        or in any other manner consistent with the Code and accompanying
        regulations.

                (c) In no event shall there first become exercisable by the
        Optionee in any one calendar year incentive stock Options granted by the
        Corporation or any related corporation with respect to shares having an
        aggregate fair market value (determined at the time an Option is
        granted) greater than $100,000.

7.      OPTION PERIOD AND LIMITATIONS ON THE RIGHT TO
        EXERCISE OPTIONS

                (a) The period during which an Option may be exercised (the
        "Option period") shall be determined by the Committee when the Option is
        granted and shall not extend more than ten years from the date on which
        the Option is granted. An Option shall be exercisable on such date or
        dates, during such period, for such number of shares, and subject to
        such conditions as shall be determined by the Committee and set forth in
        the agreement evidencing such Option, subject to the rights granted
        herein to the Committee to accelerate the time when Options may be
        exercised. Any Option or portion thereof not exercised before the
        expiration of the Option period shall terminate.

                (b) An Option may be exercised by giving written notice of at
        least ten days to the Committee or its designee at such place as the
        Committee shall direct. Such notice shall specify the number of shares
        to be purchased pursuant to an Option and the aggregate purchase price
        to be paid therefor, and shall be accompanied by the payment of such
        purchase price. Such payment shall be in the form of (i) cash; (ii)
        shares of Common Stock owned by the Optionee at the time of exercise;
        (iii) shares of Common Stock withheld upon exercise; (iv) delivery of a
        properly executed written notice of exercise to the Corporation and
        delivery to a broker of written notice of exercise and irrevocable
        instructions to promptly deliver to the Corporation the amount of sale
        or loan proceeds to pay the Option price; or (v) any combination of the
        foregoing methods. Shares tendered or withheld in payment upon the
        exercise of an Option shall be valued at their fair market value on the
        date of exercise, as determined by the Committee by applying the
        provisions of Section 6(b).

                (c) No Option granted to an Optionee who was an employee at the
        time of grant shall be exercised unless the Optionee is, at the time of
        exercise, an employee as described in Section 5(a), and has been an
        employee continuously since the date the Option was granted, subject to
        the following:

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                        (i) An Option shall not be affected by any change in the
                terms, conditions or status of the Optionee's employment,
                provided that the Optionee continues to be an employee of the
                Corporation or a related corporation.

                        (ii) The employment relationship of an Optionee shall be
                treated as continuing intact for any period that the Optionee is
                on military or sick leave or other bona fide leave of absence,
                provided that the period of such leave does not exceed ninety
                days, or, if longer, as long as the Optionee's right to
                reemployment is guaranteed either by statute or by contract. The
                employment relationship of an Optionee shall also be treated as
                continuing intact while the Optionee is not in active service
                because of disability. For purposes of this Section 7(c)(ii),
                "disability" shall mean the inability of the Optionee to engage
                in any substantial gainful activity by reason of any medically
                determinable physical or mental impairment which can be expected
                to result in death, or which has lasted or can be expected to
                last for a continuous period of not less than twelve months. The
                Committee shall determine whether an Optionee is disabled within
                the meaning of this paragraph.

                        (iii) If the employment of an Optionee is terminated
                because of disability within the meaning of subparagraph (ii),
                or if the Optionee dies while he is an employee or dies after
                the termination of his employment because of disability, the
                Option may be exercised only to the extent exercisable on the
                date of the Optionee's termination of employment or death while
                employed (the "termination date"), except that the Committee may
                in its discretion accelerate the date for exercising all or any
                part of the Option which was not otherwise exercisable on the
                termination date. The Option must be exercised, if at all, prior
                to the first to occur of the following, whichever shall be
                applicable: (A) the close of the period of twelve months next
                succeeding the termination date; or (B) the close of the Option
                period. In the event of the Optionee's death, such Option shall
                be exercisable by such person or persons as shall have acquired
                the right to exercise the Option by will or by the laws of
                intestate succession.

                        (iv) If the employment of the Optionee is terminated for
                any reason other than disability (as defined in subparagraph
                (ii)) or death or for "cause," his Option may be exercised to
                the extent exercisable on the date of such termination of
                employment, except that the Committee may in its discretion
                accelerate the date for exercising all or any part of the Option
                which was not otherwise exercisable on the date of such
                termination of employment. The Option must be exercised, if at
                all, prior to the first to occur of the following, whichever
                shall be applicable: (A) the close of the period of 90 days next
                succeeding the termination date; or (B) the close of the Option
                period. If the Optionee dies following such termination of
                employment and prior to the earlier of the dates specified in
                (A) or (B) of this subparagraph (iv), the Optionee shall be
                treated as having died while employed under subparagraph (iii)
                immediately preceding (treating for this purpose the Optionee's
                date of termination of employment as the termination date). In
                the event of the Optionee's death, such Option shall be
                exercisable by such person or persons as shall have acquired the
                right to exercise the Option by will or by the laws of intestate
                succession.

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                        (v) If the employment of the Optionee is terminated for
                "cause," his Option shall lapse and no longer be exercisable as
                of the effective time of his termination of employment, as
                determined by the Committee. For purposes of this subparagraph
                (v) and subparagraph (iv), the Optionee's termination shall be
                for "cause" if such termination results from the Optionee's (A)
                dishonesty; (B) refusal to perform his duties for the
                Corporation; or (C) engaging in conduct that could be materially
                damaging to the Corporation without a reasonable good faith
                belief that such conduct was in the best interest of the
                Corporation. The determination of "cause" shall be made by the
                Committee and its determination shall be final and conclusive.

                (d) An Option granted to an Optionee who was an independent
        contractor of the Corporation or a related corporation at the time of
        grant (and who does not thereafter become an employee, in which case he
        shall be subject to the provisions of Section 7(c) herein) may be
        exercised only to the extent exercisable on the date of the Optionee's
        termination of service to the Corporation or a related corporation
        (unless the termination was for cause), and must be exercised, if at
        all, prior to the first to occur of the following, as applicable: (A)
        the close of the period of 90 days next succeeding the termination date;
        or (B) the close of the Option period. If the services of such an
        Optionee are terminated for cause (as defined in Section 7(c)(v)
        herein), his Option shall lapse and no longer be exercisable as of the
        effective time of his termination of services, as determined by the
        Committee. Notwithstanding the foregoing, the Committee may in its
        discretion accelerate the date for exercising all or any part of an
        Option which was not otherwise exercisable on the termination date or
        extend the Option period, or both.

                (e) An Optionee or his legal representative, legatees or
        distributees shall not be deemed to be the holder of any shares subject
        to an Option unless and until certificates for such shares are issued to
        him or them under the Plan.

                (f) Nothing in the Plan shall confer upon the Optionee any right
        to continue in the service of the Corporation or a related corporation
        as an employee or independent contractor, as the case may be, or to
        interfere in any way with the right of the Corporation or a related
        corporation to terminate the Optionee's service at any time.

8.      NONTRANSFERABILITY OF OPTIONS AND SHARES

        Incentive Options granted pursuant to the Plan shall not be transferable
(including by pledge or hypothecation) other than by will or the laws of
intestate succession or pursuant to a qualified domestic relations order, as
defined by the Code or Title I of the Employee Retirement Income Security Act of
1974, as amended ("ERISA"), or the rules thereunder. Nonqualified Options
granted pursuant to the Plan shall not be transferable (including by pledge or
hypothecation) other than by will or the laws of intestate succession or
pursuant to a qualified domestic relations order, as defined by the Code or
Title I of ERISA or the rules thereunder, except as may be permitted by the
Committee in a manner consistent with the registration provisions of the
Securities Act. An Option shall be exercisable during the Optionee's lifetime
only by him. To the extent required by Section 16 of the Exchange Act, shares
acquired upon the exercise of an Option shall not, without the consent of the
Committee, be transferable

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(including by pledge or hypothecation) until the expiration of six months after
the date the Option was granted.

9.      DILUTION OR OTHER ADJUSTMENTS

        If there is any change in the outstanding shares of Common Stock of the
Corporation as a result of a merger, consolidation, reorganization, stock
dividend, stock split distributable in shares, or other change in the capital
stock structure of the Corporation, the Committee shall make such adjustments to
Options, to the number of shares reserved for issuance under the Plan, and to
any provisions of this Plan as the Committee deems equitable to prevent dilution
or enlargement of Options or otherwise advisable to reflect such change.

10.     WITHHOLDING

        The Corporation shall require any recipient of shares pursuant to the
exercise of a Nonqualified Option to pay to the Corporation in cash the amount
of any 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 such
Optionee. Notwithstanding the foregoing, the Optionee may satisfy such
obligation in whole or in part, and any other local, state or federal income tax
obligations relating to the exercise of a Nonqualified Option, by electing (the
"Election") to have the Corporation withhold shares of Common Stock from the
shares to which the Optionee is entitled. The number of shares to be withheld
shall have a fair market value (determined in accordance with Section 6(b)) as
of the date that the amount of tax to be withheld is determined (the "Tax Date")
as nearly equal as possible to (but not exceeding) the amount of such
obligations being satisfied. Each Election must be made in writing to the
Committee prior to the Tax Date.

11.     CERTAIN DEFINITIONS

        For purposes of the Plan, the following terms shall have the meaning
indicated:

                (a) "Related corporation" means any parent, subsidiary or
        predecessor of the Corporation.

                (b) "Parent" or "parent corporation" shall mean any corporation
        (other than the Corporation) in an unbroken chain of corporations ending
        with the Corporation if, at the time that the Option is granted, each
        corporation other than the Corporation owns stock possessing fifty
        percent or more of the total combined voting power of all classes of
        stock in another corporation in the chain.

                (c) "Subsidiary" or "subsidiary corporation" means any
        corporation (other than the Corporation) in an unbroken chain of
        corporations beginning with the Corporation if, at the time that the
        Option is granted, each corporation other than the last corporation in
        the unbroken chain owns stock possessing fifty percent or more of the
        total combined voting power of all classes of stock in another
        corporation in the chain.

                (d) "Predecessor" or "predecessor corporation" means a
        corporation which was a party to a transaction described in Section
        424(a) of the Code (or which would be so described

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        if a substitution or assumption under that section had occurred) with
        the Corporation, or a corporation which is a parent or subsidiary of the
        Corporation, or a predecessor of any such corporation.

                (e) In general, terms used in the Plan shall, where appropriate,
        be given the meaning ascribed to them under the provisions of the Code
        applicable to incentive stock Options.

12.     STOCK OPTION AGREEMENT

        The grant of any Option under the Plan shall be evidenced by the
execution of an agreement (the "Agreement") between the Corporation and the
Optionee. Such Agreement shall set forth the date of grant of the Option, the
Option price, the Option period, the designation of the Option as an Incentive
Option or a Nonqualified Option, and the time or times when and the conditions
upon the happening of which the Option shall become exercisable. Such Agreement
shall also set forth the restrictions, if any, with respect to which the shares
to be purchased thereunder shall be subject, and such other terms and conditions
as the Committee shall determine which are consistent with the provisions of the
Plan and applicable law and regulations.

13.     RESTRICTIONS ON SHARES

        The Corporation may impose such restrictions on any shares acquired upon
exercise of Options granted under the Plan as it may deem advisable, including,
without limitation, restrictions necessary to ensure compliance with the
Securities Act of 1933, as amended, under the requirements of any applicable
self-regulatory organization and under any blue sky or securities laws
applicable to such shares. The Corporation may cause a restrictive legend to be
placed on any certificate issued pursuant to the exercise of an Option in such
form as may be prescribed from time to time by applicable laws and regulations
or as may be advised by legal counsel.

14.     AMENDMENT OR TERMINATION

        The Plan may be amended or terminated by action of the Board; provided,
that:

                (a) Any amendment which would (i) materially increase the
        aggregate number of shares which may be issued under the Plan (other
        than changes as described in Section 9), or (ii) materially change the
        requirements for eligibility to receive Options under the Plan shall be
        made only with the approval of the shareholders of the Corporation.

                (b) No outstanding Option shall be amended or terminated (i)
        without the consent of the Optionee if such amendment or termination
        would adversely affect the Optionee's rights with respect to such
        Option; and (ii) if the Option is an Incentive Option, without the
        opinion of legal counsel to the Corporation that such amendment or
        termination will not constitute a "modification" within the meaning of
        Section 424 of the Code if the Committee determines such an opinion is
        necessary.

15.     APPLICABLE LAW

        Except as otherwise provided herein, the Plan shall be construed and
enforced according to the laws of the State of North Carolina.

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16.     SECTION 16(b) COMPLIANCE

        To the extent that participants in the Plan are subject to Section 16(b)
of the Exchange Act, it is the intention of the Corporation that transactions
under the Plan shall comply with Rule 16b-3 under the Exchange Act and, if any
Plan provision is later found not to be in compliance with Section 16 of the
Exchange Act, the provision shall be deemed null and void, and in all events the
Plan shall be construed in favor of Plan transactions meeting the requirements
of Rule 16b-3 or successor rules applicable to the Plan.

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                        2000 DECLARATION OF AMENDMENT TO
                      1997 KEY EMPLOYEES' STOCK OPTION PLAN
                                       OF
                             RF MICRO DEVICES, INC.

        THIS 2000 DECLARATION OF AMENDMENT, is made this 3rd day of January,
2000, by RF MICRO DEVICES, INC. (the "Corporation"), to the Corporation's 1997
Key Employees' Stock Option Plan (the "1997 Plan").

                                R E C I T A L S:

         WHEREAS, the Board of Directors of the Corporation has deemed it
advisable to adopt an amendment to the 1997 Plan providing for the automatic
acceleration of outstanding options granted under the 1997 Plan in the event of
certain transactions or actions constituting a change of control of the
Corporation; and

        WHEREAS, the Corporation desires to evidence such amendment by this
Declaration of Amendment.

        NOW, THEREFORE, IT IS DECLARED that, effective January 3, 2000, the 1997
Plan shall be and hereby is amended as follows:

        1. Adoption of New Section 17. The Plan is hereby amended by adding new
Section 17 ("Change of Control") as follows:

        "SECTION 17.    CHANGE OF CONTROL

                (a) Notwithstanding any other provision of the Plan to the
        contrary, in the event of a change of control (as defined in Section
        17(c) herein), all Options outstanding as of the date of such change of
        control shall become fully exercisable, whether or not then otherwise
        exercisable.

                (b) Notwithstanding the foregoing, in the event of a merger,
        share exchange, reorganization or other business combination affecting
        the Corporation or a related corporation, the Committee may, in its sole
        and absolute discretion, determine that any or all Options granted
        pursuant to the Plan shall not become exercisable on an accelerated
        basis, if the Corporation or the board of directors of the surviving or
        acquiring corporation, as the case may be, shall have taken such action,
        including but not limited to the assumption of Options granted under the
        Plan or the grant of substitute awards (in either case, with
        substantially similar terms as Options granted under the Plan), as in
        the opinion of the Committee is equitable or appropriate to protect the
        rights and interests of Optionees under the Plan. For the purposes of
        making the determinations provided for in this Section 17(b), the
        Committee shall be appointed by the Board of Directors, two-thirds of
        the members of which shall have been directors of the Corporation prior
        to the merger, share exchange, reorganization or other business
        combinations affecting the Corporation or a related corporation.

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                (c) For the purposes herein, a "change of control" shall be
        deemed to have occurred on the earliest of the following dates:

                (d) The date any entity or person shall have become the
        beneficial owner of, or shall have obtained voting control over,
        fifty-one percent (51%) or more of the outstanding Common Stock of the
        Corporation;

                (e) The date the shareholders of the Corporation approve a
        definitive agreement (A) to merge or consolidate the Corporation with
        or into another corporation, in which the Corporation is not the
        continuing or surviving corporation or pursuant to which any shares of
        Common Stock of the Corporation would be converted into cash,
        securities or other property of another corporation, other than a
        merger or consolidation of the Corporation in which holders of Common
        Stock immediately prior to the merger or consolidation have the same
        proportionate ownership of Common Stock of the surviving corporation
        immediately after the merger as immediately before, or (B) to sell or
        otherwise dispose of all or substantially all the assets of the
        Corporation; or

                (f) The date there shall have been a change in a majority of the
        Board of Directors of the Corporation within a 12-month period unless
        the nomination for election by the Corporation's shareholders of each
        new director was approved by the vote of two-thirds of the directors
        then still in office who were in office at the beginning of the 12-month
        period.

        (For purposes herein, the term "person" shall mean any individual,
        corporation, partnership, group, association or other person, as such
        term is defined in Section 13(d)(3) or Section 14(d)(2) of the Exchange
        Act, other than the Corporation, a subsidiary of the Corporation or any
        employee benefit plan(s) sponsored or maintained by the Corporation or
        any subsidiary thereof, and the term "beneficial owner" shall have the
        meaning given the term in Rule 13d-3 under the Exchange Act.)"

         2. Continued Effect. Except as set forth herein, the 1997 Plan shall
remain in full force and effect.

        IN WITNESS WHEREOF, this Declaration of Amendment is executed on behalf
of RF Micro Devices, Inc. as of the day and year first above written.

                                                RF MICRO DEVICES, INC.

                                                By:
                                                    ----------------------------
                                                David A. Norbury, President and
                                                Chief Executive Officer
ATTEST:

---------------------------------
Powell T. Seymour, Secretary
[Corporate Seal]

                                        2<PAGE>   1

                                                                    EXHIBIT 10.5

                            1999 STOCK INCENTIVE PLAN

                                       OF

                             RF MICRO DEVICES, INC.

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                            1999 STOCK INCENTIVE PLAN
                                       OF
                             RF MICRO DEVICES, INC.

1.       PURPOSE

         The purpose of the 1999 Stock Incentive Plan of RF Micro Devices, Inc.
(the "Plan") is to encourage and enable selected employees, directors and
independent contractors of RF Micro Devices, Inc. (the "Corporation") and its
related corporations to acquire or to increase their holdings of common stock of
the Corporation (the "Common Stock") and other proprietary interests in the
Corporation in order to promote a closer identification of their interests with
those of the Corporation and its shareholders, thereby further stimulating their
efforts to enhance the efficiency, soundness, profitability, growth and
shareholder value of the Corporation. This purpose will be carried out through
the granting of benefits (collectively referred to herein as "awards") to
selected employees, independent contractors and directors, including the
granting of incentive stock options ("incentive options") intended to qualify
under Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"),
nonqualified stock options ("nonqualified options"), stock appreciation rights
("SARs"), restricted stock awards ("restricted stock awards"), and restricted
units ("restricted units") to such participants. Incentive options and
nonqualified options shall be referred to herein collectively as "options."
Restricted stock awards and restricted units shall be referred to herein
collectively as "restricted awards."

2.       ADMINISTRATION OF THE PLAN

         (a) The Plan shall be administered by the Board of Directors of the
Corporation (the "Board" or the "Board of Directors") or, upon its delegation,
by the Compensation Committee of the Board of Directors (the "Committee").
Unless the Board determines otherwise, the Committee shall be comprised solely
of "non-employee directors," as such term is defined in Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), or as may
otherwise be permitted under Rule 16b-3. Further, to the extent required by
Section 162(m) of the Code and related regulations, the Plan shall be
administered by a committee comprised of "outside directors" (as such term is
defined in Section 162(m) or related regulations) or as may otherwise be
permitted under Section 162(m) and related regulations. For the purposes herein,
the term "Administrator" shall refer to the Board and, upon its delegation to
the Committee of all or part of its authority to administer the Plan, to the
Committee.

         (b) Any action of the Administrator with respect to the Plan may be
taken by a written instrument signed by all of the members of the Board or
Committee, as appropriate, and any such action so taken by written consent shall
be as fully effective as if it had been taken by a majority of the members at a
meeting duly held and called. Subject to the provisions of the Plan, the
Administrator shall have full and final authority in its discretion to take any
action with respect to the Plan including, without limitation, the authority (i)
to determine all matters relating to awards, including selection of individuals
to be granted awards, the types of awards, the number of shares of the Common
Stock, if any, subject to an award, and all terms, conditions, restrictions and
limitations of an award; (ii) to prescribe the form or forms of the agreements
evidencing any awards granted under the Plan; (iii) to establish, amend and
rescind rules and regulations for the administration of the Plan; and (iv) to
construe and interpret the Plan and agreements evidencing awards granted under
the Plan, to interpret rules and

<PAGE>   3

regulations for administering the Plan and to make all other determinations
deemed necessary or advisable for administering the Plan. The Administrator
shall also have authority, in its sole discretion, to accelerate the date that
any award which was not otherwise exercisable or vested shall become exercisable
or vested in whole or in part without any obligation to accelerate such date
with respect to any other award granted to any recipient. In addition, the
Administrator shall have the authority and discretion to establish terms and
conditions of awards as the Administrator determines to be necessary or
appropriate to conform to the applicable requirements or practices of
jurisdictions outside of the United States.

         (c) Notwithstanding Section 2(b), the Administrator may delegate to the
chief executive officer of the Corporation the authority to grant awards, and to
make any or all of the determinations reserved for the Administrator in the Plan
and summarized in Section 2(b) herein with respect to such awards, to any
individual who, at the time of said grant or other determination, (i) is not
deemed to be an officer or director of the Corporation within the meaning of
Section 16 of the Exchange Act, (ii) is not deemed to be a covered employee (as
defined in Section 18(b) herein), and (iii) is otherwise eligible under Section
5. To the extent that the Administrator has delegated authority to grant awards
pursuant to this Section 2(c) to the chief executive officer, references to the
Administrator shall include references to such person, subject, however, to the
requirements of the Plan, Rule 16b-3, Section 162(m) of the Code and other
applicable law.

3.       EFFECTIVE DATE

         The effective date of the Plan shall be July 1, 1999 (the "Effective
Date"). Awards may be granted under the Plan on and after the effective date,
but no awards will be granted after June 30, 2009.

4.       SHARES OF STOCK SUBJECT TO THE PLAN; AWARD LIMITATIONS

         (a) Subject to adjustments as provided in this Section 4, the number of
shares of Common Stock that may be issued pursuant to awards shall be four
million (4,000,000) shares. Such shares shall be authorized but unissued shares
or shares purchased on the open market or by private purchase. The maximum
number of shares of Common Stock that may be issued under the Plan pursuant to
the grant of restricted awards shall not exceed 500,000 shares. No participant
may be granted awards in any 12- month period for more than 100,000 shares of
Common Stock (or the equivalent value thereof based on the fair market value per
share of the Common Stock on the date of grant of an award).

         (b) The Corporation hereby reserves sufficient authorized shares of
Common Stock to meet the grant of awards hereunder. Any shares subject to an
award which is subsequently forfeited, expires or is terminated may again be the
subject of an award granted under the Plan. To the extent that any shares of
Common Stock subject to an award are not delivered to a participant (or his
beneficiary) because the award is forfeited, canceled, settled in cash or used
to satisfy applicable tax withholding obligations, such shares shall not be
deemed to have been issued for purposes of determining the maximum number of
shares of Common Stock available for issuance under the Plan. If the purchase
price of an award granted under the Plan is satisfied by tendering shares of
Common Stock, only the number of shares issued net of the shares of Common Stock
tendered shall be deemed issued for

                                        2

<PAGE>   4

purposes of determining the maximum number of shares of Common Stock available
for issuance under the Plan.

         (c) If there is any change in the outstanding shares of Common Stock
because of a merger, consolidation or reorganization involving the Corporation
or a related corporation, or if the Board of Directors of the Corporation
declares a stock dividend or stock split distributable in shares of Common
Stock, or if there is a similar change in the capital stock structure of the
Corporation or a related corporation affecting the Common Stock, the number of
shares of Common Stock reserved for issuance under the Plan shall be
correspondingly adjusted, and the Administrator shall make such adjustments to
awards or to any provisions of this Plan as the Administrator deems equitable to
prevent dilution or enlargement of awards or as may be otherwise advisable.

5.       ELIGIBILITY

         An award may be granted only to an individual who satisfies the
following eligibility requirements on the date the award is granted:

         (a) The individual is either (i) an employee of the Corporation or a
related corporation, (ii) a director of the Corporation or a related
corporation, or (iii) an independent contractor, consultant or advisor
(collectively, "independent contractors") providing services to the Corporation
or a related corporation. For this purpose, an individual shall be considered to
be an "employee" only if there exists between the individual and the Corporation
or a related corporation the legal and bona fide relationship of employer and
employee.

         (b) With respect to the grant of incentive options, the individual does
not own, immediately before the time that the incentive option is granted, stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Corporation or a related corporation. Notwithstanding the
foregoing, an individual who owns more than 10% of the total combined voting
power of the Corporation or a related corporation may be granted an incentive
option if the option price is at least 110% of the fair market value of the
Common Stock (as defined in Section 6(c)(ii) herein), and the option period (as
defined in Section 6(d) herein) does not exceed five years. For this purpose, an
individual will be deemed to own stock which is attributable to him under
Section 424(d) of the Code.

         (c) With respect to the grant of substitute awards or assumption of
awards in connection with a merger, reorganization or similar business
combination involving the Corporation or related corporation, the recipient is
otherwise eligible to receive the award and the terms of the award are
consistent with the Plan and applicable laws, rules and regulations (including,
to the extent necessary, the federal securities laws registration provisions and
Section 424(a) of the Code).

         (d) The individual, being otherwise eligible under this Section 5, is
selected by the Administrator as an individual to whom an award shall be granted
(a "participant").

                                        3

<PAGE>   5

6.       OPTIONS

         (a) Grant of Options: Subject to the limitations of the Plan, the
Administrator may in its sole and absolute discretion grant options to such
eligible individuals in such numbers, upon such terms and at such times as the
Administrator shall determine. Both incentive options and nonqualified options
may be granted under the Plan. To the extent that an option is designated as an
incentive option but does not qualify as such under Section 422 of the Code, the
option (or portion thereof) shall be treated as a nonqualified option.

         (b) Option Price: The price per share at which an option may be
exercised (the "option price") shall be established by the Administrator and
stated in the agreement evidencing the grant of the option; provided, that (i)
in the case of an incentive option, the option price shall be no less than the
fair market value per share of the Common Stock (as determined in accordance
with Section 6(c)(ii) on the date the option is granted) and (ii) in no event
shall the option price per share of any option be less than the par value per
share of the Common Stock.

         (c) Date of Grant; Fair Market Value

                  (i) An incentive option shall be considered to be granted on
         the date that the Administrator acts to grant the option, or on any
         later date specified by the Administrator as the effective date of the
         option. A nonqualified option shall be considered to be granted on the
         date the Administrator acts to grant the option or any other date
         specified by the Administrator as the date of grant of the option.

                  (ii) For the purposes of the Plan, the fair market value per
         share of the Common Stock shall be established in good faith by the
         Administrator and, except as may otherwise be determined by the
         Administrator, the fair market value shall be determined in accordance
         with the following provisions: (A) if the shares of Common Stock are
         listed for trading on the New York Stock Exchange or the American Stock
         Exchange, the fair market value shall be the closing sales price per
         share of the shares on the New York Stock Exchange or the American
         Stock Exchange (as applicable) on the date immediately preceding the
         date the option is granted, or, if there is no transaction on such
         date, then on the trading date nearest preceding the date the option is
         granted for which closing price information is available, and, provided
         further, if the shares are quoted on the Nasdaq National Market or the
         Nasdaq SmallCap Market of the Nasdaq Stock Market but are not listed
         for trading on the New York Stock Exchange or the American Stock
         Exchange, the fair market value shall be the closing sales price for
         such stock (or the closing bid, if no sales were reported) as quoted on
         such system on the date immediately preceding the date the option is
         granted for which such information is available; or (B) if the shares
         of Common Stock are not listed or reported in any of the foregoing,
         then the fair market value shall be determined by the Administrator in
         accordance with the applicable provisions of Section 20.2031-2 of the
         Federal Estate Tax Regulations, or in any other manner consistent with
         the Code and accompanying regulations.

                  (iii) In no event shall there first become exercisable by an
         employee in any one calendar year incentive options granted by the
         Corporation or any related corporation with

                                        4

<PAGE>   6

         respect to shares having an aggregate fair market value (determined at
         the time an incentive option is granted) greater than $100,000.

         (d) Option Period and Limitations on the Right to Exercise Options

                  (i) The term of an option (the "option period") shall be
         determined by the Administrator at the time the option is granted and
         stated in the individual agreement. With respect to incentive options,
         the option period shall not extend more than 10 years from the date on
         which the option is granted. Any option or portion thereof not
         exercised before expiration of the option period shall terminate. The
         period or periods during which an option may become exercisable shall
         be determined by the Administrator in a manner consistent with the
         terms of the Plan.

                  (ii) An option may be exercised by giving written notice to
         the Corporation at such place as the Corporation or its designee shall
         direct. Such notice shall specify the number of shares to be purchased
         pursuant to an option and the aggregate purchase price to be paid
         therefor, and shall be accompanied by the payment of such purchase
         price. Unless the individual option agreement provides otherwise, such
         payment shall be in the form of (A) cash; (B) delivery (by either
         actual delivery or attestation) of shares of Common Stock owned by the
         participant at the time of exercise and acceptable to the
         Administrator; (C) shares of Common Stock withheld upon exercise; (D)
         delivery of written notice of exercise to the Corporation and delivery
         to a broker of written notice of exercise and irrevocable instructions
         to promptly deliver to the Corporation the amount of sale or loan
         proceeds to pay the option price; or (E) a combination of the foregoing
         methods. Shares tendered or withheld in payment on the exercise of an
         option shall be valued at their fair market value on the date of
         exercise, as determined by the Administrator by applying the provisions
         of Section 6(c)(ii).

                  (iii) Unless an individual option agreement provides
         otherwise, no option granted to a participant who was an employee at
         the time of grant shall be exercised unless the participant is, at the
         time of exercise, an employee as described in Section 5(a), and has
         been an employee continuously since the date the option was granted,
         subject to the following:

                           (A) An option shall not be affected by any change in
                  the terms, conditions or status of the participant's
                  employment, provided that the participant continues to be an
                  employee of the Corporation or a related corporation.

                           (B) The employment relationship of a participant
                  shall be treated as continuing intact for any period that the
                  participant is on military or sick leave or other bona fide
                  leave of absence, provided that the period of such leave does
                  not exceed 90 days, or, if longer, as long as the
                  participant's right to reemployment is guaranteed either by
                  statute or by contract. The employment relationship of a
                  participant shall also be treated as continuing intact while
                  the participant is not in active service because of
                  disability. The Administrator shall

                                        5

<PAGE>   7

                  have sole authority to determine whether a participant is
                  disabled and, if applicable, the date of a participant's
                  termination of employment or service for any reason (the
                  "termination date").

                           (C) Unless an individual option agreement provides
                  otherwise, if the employment of a participant is terminated
                  because of disability, or if the participant dies while he is
                  an employee, the option may be exercised only to the extent
                  exercisable on the participant's termination date, except that
                  the Administrator may in its discretion accelerate the date
                  for exercising all or any part of the option which was not
                  otherwise exercisable on the termination date. The option must
                  be exercised, if at all, prior to the first to occur of the
                  following, whichever shall be applicable: (X) the close of the
                  period of 12 months next succeeding the termination date; or
                  (Y) the close of the option period. In the event of the
                  participant's death, such option shall be exercisable by such
                  person or persons as shall have acquired the right to exercise
                  the option by will or by the laws of intestate succession.

                           (D) Unless an individual option agreement provides
                  otherwise, if the employment of the participant is terminated
                  for any reason other than disability, death or for "cause,"
                  his option may be exercised to the extent exercisable on his
                  termination date, except that the Administrator may in its
                  discretion accelerate the date for exercising all or any part
                  of the option which was not otherwise exercisable on the
                  termination date. The option must be exercised, if at all,
                  prior to the first to occur of the following, whichever shall
                  be applicable: (X) the close of the period of 90 days next
                  succeeding the termination date; or (Y) the close of the
                  option period. If the participant dies following such
                  termination of employment and prior to the earlier of the
                  dates specified in (X) or (Y) of this subparagraph (D), the
                  participant shall be treated as having died while employed
                  under subparagraph (C) immediately preceding (treating for
                  this purpose the participant's date of termination of
                  employment as the termination date). In the event of the
                  participant's death, such option shall be exercisable by such
                  person or persons as shall have acquired the right to exercise
                  the option by will or by the laws of intestate succession.

                           (E) Unless an individual option agreement provides
                  otherwise, if the employment of the participant is terminated
                  for "cause," his option shall lapse and no longer be
                  exercisable as of his termination date, as determined by the
                  Administrator. For purposes of this subparagraph (E) and
                  subparagraph (D), the participant's termination shall be for
                  "cause" if such termination results from the participant's (X)
                  dishonesty; (Y) refusal to perform his duties for the
                  Corporation; or (Z) engaging in conduct that could be
                  materially damaging to the Corporation without a reasonable
                  good faith belief that such conduct was in the best interest
                  of the Corporation. The determination of "cause" shall be made
                  by the Administrator and its determination shall be final and
                  conclusive.

                                        6

<PAGE>   8

                           (F) Notwithstanding the foregoing, the Administrator
                  shall have authority, in its discretion, to extend the period
                  during which an option may be exercised; provided that, in the
                  event that any such extension shall cause an incentive option
                  to be designated as a nonqualified option, no such extension
                  shall be made without the prior written consent of the
                  participant.

                  (iv) Unless an individual option agreement provides otherwise,
         an option granted to a participant who was a non-employee director of
         the Corporation or a related corporation at the time of grant may be
         exercised only to the extent exercisable on the date of the
         participant's termination of service to the Corporation or a related
         corporation (unless the termination was for cause), and must be
         exercised, if at all, prior to the first to occur of the following, as
         applicable: (X) the close of the period of one year next succeeding the
         termination date; or (Y) the close of the option period. If the
         services of such a participant are terminated for cause (as defined in
         Section 6(d)(iii)(E) herein), his option shall lapse and no longer be
         exercisable as of his termination date, as determined by the
         Administrator. Notwithstanding the foregoing, the Administrator may in
         its discretion accelerate the date for exercising all or any part of an
         option which was not otherwise exercisable on the termination date or
         extend the period during which an option may be exercised, or both.

                  (v) Unless an individual option agreement provides otherwise,
         an option granted to a participant who was an independent contractor of
         the Corporation or a related corporation at the time of grant (and who
         does not thereafter become an employee, in which case he shall be
         subject to the provisions of Section 6(d)(iii) herein) may be exercised
         only to the extent exercisable on the date of the participant's
         termination of service to the Corporation or a related corporation
         (unless the termination was for cause), and must be exercised, if at
         all, prior to the first to occur of the following, as applicable: (X)
         the close of the period of 90 days next succeeding the termination
         date; or (Y) the close of the option period. If the services of such a
         participant are terminated for cause (as defined in Section
         6(d)(iii)(E) herein), his option shall lapse and no longer be
         exercisable as of his termination date, as determined by the
         Administrator. Notwithstanding the foregoing, the Administrator may in
         its discretion accelerate the date for exercising all or any part of an
         option which was not otherwise exercisable on the termination date or
         extend the period during which an option may be exercised, or both.

                  (vi) A participant or his legal representative, legatees or
         distributees shall not be deemed to be the holder of any shares subject
         to an option and shall not have any rights of a shareholder unless and
         until certificates for such shares have been issued and delivered to
         him or them under the Plan. A certificate or certificates for shares of
         Common Stock acquired upon exercise of an option shall be issued in the
         name of the participant (or his beneficiary) and distributed to the
         participant (or his beneficiary) as soon as practicable following
         receipt of notice of exercise and payment of the purchase price (except
         as may otherwise be determined by the Corporation in the event of
         payment of the option price pursuant to Section 6(d)(ii)(D) herein).

                                        7

<PAGE>   9

         (e) Nontransferability of Options

                  (i) Incentive options shall not be transferable other than by
         will or the laws of intestate succession. Nonqualified options shall
         not be transferable other than by will or the laws of intestate
         succession, except as may be permitted by the Administrator in a manner
         consistent with the registration provisions of the Securities Act of
         1933, as amended (the "Securities Act"). Except as may be permitted by
         the preceding sentence, an option shall be exercisable during the
         participant's lifetime only by him or by his guardian or legal
         representative. The designation of a beneficiary does not constitute a
         transfer.

                  (ii) If a participant is subject to Section 16 of the Exchange
         Act, shares of Common Stock acquired upon exercise of an option may
         not, without the consent of the Administrator, be disposed of by the
         participant until the expiration of six months after the date the
         option was granted.

7.       STOCK APPRECIATION RIGHTS

         (a) Grant of SARs: Subject to the limitations of the Plan, the
Administrator may in its sole and absolute discretion grant SARs to such
eligible individuals, in such numbers, upon such terms and at such times as the
Administrator shall determine. SARs may be granted to an optionee of an option
(hereinafter called a "related option") with respect to all or a portion of the
shares of Common Stock subject to the related option (a "tandem SAR") or may be
granted separately to an eligible individual (a "freestanding SAR").

         (b) Tandem SARs: A tandem SAR may be granted either concurrently with
the grant of the related option or (if the related option is a nonqualified
option) at any time thereafter prior to the complete exercise, termination,
expiration or cancellation of such related option. Tandem SARs shall be
exercisable only at the time and to the extent that the related option is
exercisable (and may be subject to such additional limitations on exercisability
as the Administrator may provide in the agreement), and in no event after the
complete termination or full exercise of the related option. For purposes of
determining the number of shares of Common Stock that remain subject to such
related option and for purposes of determining the number of shares of Common
Stock in respect of which other awards may be granted, a related option shall be
considered to have been surrendered upon the exercise of a tandem SAR to the
extent of the number of shares of Common Stock with respect to which such tandem
SAR is exercised. Upon the exercise or termination of a related option, the
tandem SARs with respect thereto shall be canceled automatically to the extent
of the number of shares of Common Stock with respect to which the related option
was so exercised or terminated. Subject to the limitations of the Plan, upon the
exercise of a tandem SAR, the participant shall be entitled to receive from the
Corporation, for each share of Common Stock with respect to which the tandem SAR
is being exercised, consideration equal in value to the excess of the fair
market value of a share of Common Stock on the date of exercise over the related
option price per share; provided, that the Administrator may establish a maximum
value payable for such SARs.

         (c) Freestanding SARs: Unless an individual agreement provides
otherwise, the base price of a freestanding SAR shall be not less than 100% of
the fair market value of the Common Stock (as

                                        8

<PAGE>   10

determined in accordance with Section 6(c)(ii) herein) on the date of grant of
the freestanding SAR. Subject to the limitations of the Plan, upon the exercise
of a freestanding SAR, the participant shall be entitled to receive from the
Corporation, for each share of Common Stock with respect to which the
freestanding SAR is being exercised, consideration equal in value to the excess
of the fair market value of a share of Common Stock on the date of exercise over
the base price per share of such freestanding SAR; provided, that the
Administrator may establish a maximum value payable for such SARs.

         (d) Exercise of SARs:

                  (i) Subject to the terms of the Plan, SARs shall be
         exercisable in whole or in part upon such terms and conditions as may
         be established by the Administrator and stated in the related
         agreement. The period during which an SAR may be exercisable shall not
         exceed 10 years from the date of grant or, in the case of tandem SARs,
         such shorter option period as may apply to the related option. Any SAR
         or portion thereof not exercised before expiration of the exercise
         period established by the Administrator shall terminate.

                  (ii) SARs may be exercised by giving written notice to the
         Corporation at such place as the Administrator or its designee shall
         direct. The date of exercise of an SAR shall mean the date on which the
         Corporation shall have received proper notice from the participant of
         the exercise of such SAR.

                  (iii) No SAR may be exercised unless the participant is, at
         the time of exercise, an eligible participant, as described in Section
         5, and has been a participant continuously since the date the SAR was
         granted, subject to the provisions of Sections 6(d)(iii), (iv) and (v)
         herein.

         (e) Consideration: The consideration to be received upon the exercise
of the SAR by the participant shall be paid in cash, shares of Common Stock
(valued at fair market value on the date of exercise of such SAR in accordance
with Section 6(c)(ii) herein) or a combination of cash and shares of Common
Stock, as elected by the Administrator. The Corporation's obligation arising
upon the exercise of the SAR may be paid currently or on a deferred basis with
such interest or earnings equivalent, if any, as the Administrator may
determine. A certificate or certificates for shares of Common Stock acquired
upon exercise of an SAR for shares shall be issued in the name of the
participant (or his beneficiary) and distributed to the participant (or his
beneficiary) as soon as practicable following receipt of notice of exercise. A
participant or his legal representative, legatees or distributees shall not be
deemed to be the holder of any shares subject to an SAR and shall not have any
rights as a shareholder unless and until certificates for such shares have been
issued and delivered to him or them under the Plan. No fractional shares of
Common Stock will be issuable upon exercise of the SAR and, unless otherwise
provided in the applicable agreement, the participant will receive cash in lieu
of fractional shares.

         (f) Limitations: The applicable SAR agreement shall contain such terms,
conditions and limitations consistent with the Plan as may be specified by the
Administrator. Unless otherwise provided in the applicable agreement or the
Plan, any such terms, conditions or limitations relating to a tandem SAR shall
not restrict the exercisability of the related option.

                                        9

<PAGE>   11

         (g) Nontransferability:

                  (i) SARs shall not be transferable other than by will or the
         laws of intestate succession. SARs may be exercised during the
         participant's lifetime only by him or by his guardian or legal
         representative. The designation of a beneficiary does not constitute a
         transfer.

                  (ii) If the participant is subject to Section 16 of the
         Exchange Act, shares of Common Stock acquired upon exercise of an SAR
         may not, without the consent of the Administrator, be disposed of by
         the participant until the expiration of six months after the date the
         SAR was granted.

8.       RESTRICTED AWARDS

         (a) Grant of Restricted Awards: Subject to the limitations of the Plan,
the Administrator may in its sole and absolute discretion grant restricted
awards to such individuals in such numbers, upon such terms and at such times as
the Administrator shall determine. A restricted award may consist of a
restricted stock award or a restricted unit, or both. Restricted awards shall be
payable in cash or whole shares of Common Stock (including restricted stock), or
partly in cash and partly in whole shares of Common Stock, in accordance with
the terms of the Plan and the sole and absolute discretion of the Administrator.
The Administrator shall determine the nature, length and starting date of the
period, if any, during which a restricted award may be earned (the "restriction
period"), and shall determine the conditions which must be met in order for a
restricted award to be granted or to vest or be earned (in whole or in part),
which conditions may include, but are not limited to, attainment of performance
objectives, completion of the restriction period (or a combination of attainment
of performance objectives and completion of the restriction period), retirement,
displacement, disability or death, or any combination of such conditions. In the
case of restricted awards based upon performance criteria, or a combination of
performance criteria and continued service, the Administrator shall determine
the performance objectives to be used in valuing restricted awards and determine
the extent to which such awards have been earned. Performance objectives may
vary from participant to participant and between groups of participants and
shall be based upon such Corporation, business unit and/or individual
performance factors and criteria as the Administrator in its sole discretion may
deem appropriate, including, but not limited to, sales goals, earnings per
share, return on equity, return on assets or total return to shareholders. The
Administrator shall have sole authority to determine whether and to what degree
restricted awards have been earned and are payable and to interpret the terms
and conditions of restricted awards and the provisions herein. The Administrator
shall also determine the form and terms of payment of awards. The Administrator,
in its sole and absolute discretion, may accelerate the date that any restricted
award granted to the participant shall be deemed to be earned in whole or in
part, without any obligation to accelerate such date with respect to other
restricted awards.

         (b) Forfeiture of Restricted Awards: Unless an individual agreement
provides otherwise, if the employment or service of a participant shall be
terminated for any reason and the participant has not yet earned all or part of
a restricted award pursuant to the terms of the Plan and the individual
agreement, such award to the extent not then earned shall be forfeited
immediately upon such termination and the participant shall have no further
rights with respect thereto.

                                       10

<PAGE>   12

         (c) Dividend and Voting Rights; Share Certificates: Unless an
individual agreement provides otherwise, (i) a participant shall have no
dividend rights or voting rights or other rights as a shareholder with respect
to shares subject to a restricted award that has not yet vested; and (ii) a
certificate or certificates for shares representing a restricted award payable
in shares shall be issued in the name of the participant (or his beneficiary)
and distributed to the participant (or his beneficiary) as soon as practicable
after the shares subject to the award shall be earned.

         (d) Nontransferability:

                  (i) The recipient of a restricted award shall not sell,
         transfer, assign, pledge or otherwise encumber shares subject to the
         award until all conditions to vesting have been met and shares have
         been issued and delivered to him.

                  (ii) Restricted awards shall not be transferable other than by
         will or the laws of intestate succession. The designation of a
         beneficiary does not constitute a transfer.

                  (iii) If a participant of a restricted award is subject to
         Section 16 of the Exchange Act, shares of Common Stock subject to such
         award may not, without the consent of the Administrator, be sold or
         otherwise disposed of within six months following the date of grant of
         such award.

9.       WITHHOLDING

         The Corporation shall withhold all required local, state and federal
taxes from any amount payable in cash with respect to an award. The Corporation
shall require any recipient of an award payable in shares of the Common Stock to
pay to the Corporation in cash the amount of any 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 such recipient. Notwithstanding the foregoing,
the Corporation may establish procedures to permit a recipient to satisfy such
obligation in whole or in part, and any other local, state or federal income tax
obligations relating to such an award, by electing (the "election") to have the
Corporation withhold shares of Common Stock from the shares to which the
recipient is entitled. The number of shares to be withheld shall have a fair
market value as of the date that the amount of tax to be withheld is determined
as nearly equal as possible to (but not exceeding) the amount of such
obligations being satisfied. Each election must be made in writing to the
Administrator in accordance with election procedures established by the
Administrator.

10.      SECTION 16(b) COMPLIANCE

         It is the general intent of the Corporation that transactions under the
Plan which are subject to Section 16 of the Exchange Act shall comply with Rule
16b-3 under the Exchange Act. Notwithstanding anything in the Plan to the
contrary, the Administrator, in its sole and absolute discretion, may bifurcate
the Plan so as to restrict, limit or condition the use of any provision of the
Plan to participants who are officers or directors subject to Section 16 of the
Exchange Act without so restricting, limiting or conditioning the Plan with
respect to other participants.

                                       11

<PAGE>   13

11.      NO RIGHT OR OBLIGATION OF CONTINUED EMPLOYMENT

         Nothing in the Plan shall confer upon the participant any right to
continue in the service of the Corporation or a related corporation as an
employee, director, or independent contractor or to interfere in any way with
the right of the Corporation or a related corporation to terminate the
participant's employment or service at any time. Except as otherwise provided in
the Plan or an individual agreement, awards granted under the Plan to employees
of the Corporation or a related corporation shall not be affected by any change
in the duties or position of the participant, as long as such individual remains
an employee of, or in service to, the Corporation or a related corporation.

12.      UNFUNDED PLAN; RETIREMENT PLANS

         (a) Neither a participant nor any other person shall, by reason of the
Plan, acquire any right in or title to any assets, funds or property of the
Corporation or any related corporation, including, without limitation, any
specific funds, assets or other property which the Corporation or any related
corporation, in their discretion, may set aside in anticipation of a liability
under the Plan. A participant shall have only a contractual right to the Common
Stock or amounts, if any, payable under the Plan, unsecured by any assets of the
Corporation or any related corporation. Nothing contained in the Plan shall
constitute a guarantee that the assets of such corporations shall be sufficient
to pay any benefits to any person.

         (b) In no event shall any amounts accrued, distributable or payable
under the Plan be treated as compensation for the purpose of determining the
amount of contributions or benefits to which any person shall be entitled under
any retirement plan sponsored by the Corporation or a related corporation that
is intended to be a qualified plan within the meaning of Section 401(a) of the
Code.

13.      AMENDMENT AND TERMINATION OF THE PLAN

         The Plan and any award granted under the Plan may be amended or
terminated at any time by the Board of Directors of the Corporation; provided,
that (i) approval of an amendment to the Plan by the shareholders of the
Corporation shall be required to the extent, if any, that shareholder approval
of such amendment is required by applicable law, rule or regulation; and (ii)
such amendment or termination of an award shall not, without the consent of a
recipient of an award, adversely affect the rights of the recipient with respect
to an outstanding award.

14.      RESTRICTIONS ON SHARES

         The Corporation may impose such restrictions on any shares representing
awards hereunder 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 shares. Notwithstanding any other Plan provision to the
contrary, the Corporation shall not be obligated to issue, deliver or transfer
shares of Common Stock under the Plan or make any other distribution of benefits
under the Plan, or 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

                                       12

<PAGE>   14

on any certificate issued pursuant to an award hereunder in such form as may be
prescribed from time to time by applicable laws and regulations or as may be
advised by legal counsel.

15.      APPLICABLE LAW

         The Plan shall be governed by and construed in accordance with the laws
of the State of North Carolina, without regard to the conflict of laws
provisions of any state.

16.      SHAREHOLDER APPROVAL

         The Plan is subject to approval by the shareholders of the Corporation,
which approval must occur, if at all, within 12 months of the effective date of
the Plan. Awards granted prior to such shareholder approval shall be conditioned
upon and shall be effective only upon approval of the Plan by such shareholders
on or before such date.

17.      CHANGE OF CONTROL

         (a) Notwithstanding any other provision of the Plan to the contrary, in
the event of a change of control (as defined in Section 17(b) herein):

                  (i) All options and SARs outstanding as of the date of such
         change of control shall become fully exercisable, whether or not then
         otherwise exercisable.

                  (ii) Any restrictions including but not limited to the
         restriction period applicable to any restricted award shall be deemed
         to have expired, and such restricted awards shall become fully vested
         and payable to the fullest extent of the original grant of the
         applicable award.

                  (iii) Notwithstanding the foregoing, in the event of a merger,
         share exchange, reorganization or other business combination affecting
         the Corporation or a related corporation, the Administrator may, in its
         sole and absolute discretion, determine that any or all awards granted
         pursuant to the Plan shall not vest or become exercisable on an
         accelerated basis, if the Corporation or the board of directors of the
         surviving or acquiring corporation, as the case may be, shall have
         taken such action, including but not limited to the assumption of
         awards granted under the Plan or the grant of substitute awards (in
         either case, with substantially similar terms as awards granted under
         the Plan), as in the opinion of the Administrator is equitable or
         appropriate to protect the rights and interests of participants under
         the Plan. For the purposes herein, if the Committee is acting as the
         Administrator authorized to make the determinations provided for in
         this Section 17(a)(iii), the Committee shall be appointed by the Board
         of Directors, two-thirds of the members of which shall have been
         directors of the Corporation prior to the merger, share exchange,
         reorganization or other business combinations affecting the Corporation
         or a related corporation.

         (b) For the purposes herein, a "change of control" shall be deemed to
have occurred on the earliest of the following dates:

                                       13

<PAGE>   15

                  (i) The date any entity or person that is not a shareholder on
         the effective date of the Plan shall have become the beneficial owner
         of, or shall have obtained voting control over, fifty-one percent (51%)
         or more of the outstanding Common Stock of the Corporation;

                  (ii) The date the shareholders of the Corporation approve a
         definitive agreement (A) to merge or consolidate the Corporation with
         or into another corporation, in which the Corporation is not the
         continuing or surviving corporation or pursuant to which any shares of
         Common Stock of the Corporation would be converted into cash,
         securities or other property of another corporation, other than a
         merger or consolidation of the Corporation in which holders of Common
         Stock immediately prior to the merger or consolidation have the same
         proportionate ownership of Common Stock of the surviving corporation
         immediately after the merger as immediately before, or (B) to sell or
         otherwise dispose of all or substantially all the assets of the
         Corporation; or

                  (iii) The date there shall have been a change in a majority of
         the Board of Directors of the Corporation within a 12-month period
         unless the nomination for election by the Corporation's shareholders of
         each new director was approved by the vote of two-thirds of the
         directors then still in office who were in office at the beginning of
         the 12-month period.

         (For purposes herein, the term "person" shall mean any individual,
         corporation, partnership, group, association or other person, as such
         term is defined in Section 13(d)(3) or Section 14(d)(2) of the Exchange
         Act, other than the Corporation, a subsidiary of the Corporation or any
         employee benefit plan(s) sponsored or maintained by the Corporation or
         any subsidiary thereof, and the term "beneficial owner" shall have the
         meaning given the term in Rule 13d-3 under the Exchange Act.)

18.      CERTAIN DEFINITIONS

         In addition to other terms defined in the Plan, the following terms
shall have the meaning indicated:

         (a) "Agreement" means any written agreement or agreements between the
Corporation and the recipient of an award pursuant to the Plan relating to the
terms, conditions and restrictions of options, SARs, restricted awards and any
other awards conferred herein.

         (b) "Covered employee" shall have the meaning given the term in Section
162(m) of the Code or the regulations thereunder.

         (c) "Disability" shall mean the inability to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death, or which has lasted or can
be expected to last for a continuous period of not less than twelve months.

         (d) "Parent" or "parent corporation" shall mean any corporation (other
than the Corporation) in an unbroken chain of corporations ending with the
Corporation if each corporation other than the Corporation owns stock possessing
50% or more of the total combined voting power of all classes of stock in
another corporation in the chain.

                                       14

<PAGE>   16

         (e) "Predecessor" or "predecessor corporation" means a corporation
which was a party to a transaction described in Section 424(a) of the Code (or
which would be so described if a substitution or assumption under Section 424(a)
had occurred) with the Corporation, or a corporation which is a parent or
subsidiary of the Corporation, or a predecessor of any such corporation.

         (f) "Related corporation" means any parent, subsidiary or predecessor
of the Corporation.

         (g) "Restricted stock" shall mean shares of Common Stock which are
subject to restricted awards payable in shares, the vesting of which is subject
to restrictions set forth in the Plan or the agreement relating to such award.

         (h) "Retirement" shall mean retirement in accordance with the
retirement policies and procedures established by the Corporation, unless an
individual agreement establishes a different meaning for such term.

         (i) "Subsidiary" or "subsidiary corporation" means any corporation
(other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation if each corporation other than the last corporation in the
unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in another corporation in the chain.

         IN WITNESS WHEREOF, this 1999 Stock Incentive Plan of RF Micro Devices,
Inc., is, by the authority of the Board of Directors of the Corporation,
executed in behalf of the Corporation, the ____ day of _______________, 1999.

                                         RF MICRO DEVICES, INC.

                                         By:
                                             -----------------------------------
                                         Name: _________________________________
                                         Title: ________________________________

ATTEST:

----------------------------------
Secretary

[Corporate Seal]

                                       15

<PAGE>   17

                        2000 DECLARATION OF AMENDMENT TO
                            1999 STOCK INCENTIVE PLAN
                                       OF
                             RF MICRO DEVICES, INC.

        THIS 2000 DECLARATION OF AMENDMENT, is made this 3rd day of January,
2000, by RF MICRO DEVICES, INC. (the "Corporation"), to the Corporation's 1999
Stock Incentive Plan (the "1999 Plan").

                                R E C I T A L S:

        WHEREAS, the Board of Directors of the Corporation has deemed it
advisable to amend Section 17(b)(i) of the 1999 Plan; and

        WHEREAS, the Corporation desires to evidence such amendment by this
Declaration of Amendment.

        NOW, THEREFORE, IT IS DECLARED that, effective January 3, 2000, the 1999
Plan shall be and hereby is amended as follows:

        1. Amendment to Section 17. Section 17 ("Change of Control") of the 1999
Plan is hereby amended by deleting Section 17(b)(i) and inserting the following
in lieu thereof:

                "(i) The date any entity or person shall have become the
        beneficial owner of, or shall have obtained voting control over,
        fifty-one percent (51%) or more of the outstanding Common Stock of the
        Corporation;"

        2. Continued Effect. Except as set forth herein, the 1999 Plan shall
remain in full force and effect.

        IN WITNESS WHEREOF, this Declaration of Amendment is executed on behalf
of RF Micro Devices, Inc. as of the day and year first above written.

                                            RF MICRO DEVICES, INC.

                                            By:
                                                --------------------------------
                                                David A. Norbury, President and
                                                Chief Executive Officer
ATTEST:

---------------------------------
Powell T. Seymour, Secretary

[Corporate Seal]

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