Document:

Exhibit 10.3

Exhibit 10.3

LUMINEX CORPORATION

RESTRICTED SHARE UNIT AWARD AGREEMENT

(2010 LTIP)

THIS RESTRICTED SHARE UNIT AWARD AGREEMENT (this “Agreement”) is made and entered into as of
the 11th day of March, 2010 (the “Grant Date”), between Luminex Corporation, a Delaware
corporation, (together with its Subsidiaries, the “Company”), and
________________________
(the “Grantee”). Capitalized terms not otherwise defined herein shall have the meaning ascribed to such
terms in the Luminex Corporation 2010 Long Term Incentive Plan (the “LTIP”).

WHEREAS, the Company has adopted the LTIP under the Luminex Corporation Amended and Restated
2006 Equity Incentive Plan, as amended from time to time (the “Plan”), which provides for the
issuance of Performance Awards under the Plan in the form of Restricted Share Units; and

WHEREAS, pursuant to the LTIP, the Committee has granted a Performance Award of Restricted
Share Units to the Grantee as provided herein;

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound hereby, agree as follows:

1. Grant of Restricted Share Units.

(a) The Company hereby grants to the Grantee an award (the “Award”) of [MAX AMT SPECIFIED IN
PLAN] Restricted Share Units (the “RSUs”) on the terms and conditions set forth in this Agreement
and as otherwise provided in the LTIP.

(b) The Grantee’s rights with respect to the Award shall remain forfeitable at all times prior
to the dates on which the restrictions shall lapse in accordance with Section 1(c) and
Section 2 hereof.

(c) Upon the completion of the Performance Period set forth in the LTIP and the Committee’s
determination of the achievement of the performance targets set forth on Schedule A of the
LTIP (the “Determination Date”), the number of RSUs granted hereby shall be immediately reduced to
equal the number of Eligible Units determined in accordance with the LTIP. In the event Grantee’s
employment with the Company terminates prior to the Determination Date for any reason, the number
of Eligible Units shall be zero. Grantee shall have no further rights with respect to any RSUs in
excess of the Eligible Units and such excess number shall be deemed cancelled for purposes of the
Plan.

2. Terms; Restricted Period.

(a) Except as provided herein and subject to such other exceptions as may be determined by the
Committee in its discretion, the “Restricted Period” for fifty percent (50%) of the Eligible Units
granted herein shall immediately expire on the Determination Date; the Restricted Period for the
remaining fifty percent (50%) of the Eligible Units granted herein shall expire on the second
anniversary of the completion of the Performance Period.

(b) No dividend equivalents shall be paid or payable with respect to the RSUs covered by this
Award. The Grantee shall not be entitled to voting rights with respect to the RSUs covered by
this Award.

 

 

 

(c) None of the RSUs may be sold, assigned, transferred, pledged, hypothecated or otherwise
encumbered or disposed of during the Restricted Period as to such RSUs.

(d) Except as otherwise determined by the Committee at or after the grant of the Award
hereunder, any RSUs as to which the applicable “Restricted Period” has not expired shall be
forfeited, and all rights of the Grantee to such Awards shall terminate, without further obligation
on the part of the Company, unless the Grantee remains in the continuous employment of the Company
or its Subsidiaries for the entire Restricted Period.

(e) Notwithstanding the foregoing, the Restricted Period shall automatically terminate as to
all Eligible Units awarded hereunder (as to which such Restricted Period has not previously
terminated), upon the occurrence of termination of the Grantee’s employment with the Company (or a
Subsidiary or Affiliate) after the end of the Performance Period which results from any of the
following: (i) Grantee’s death or disability (to be determined in the sole discretion of the
Committee); (ii) the involuntary termination of Grantee’s employment by the Company without Cause;
or (iii) Grantee ceases employment with the Company for Good Reason.

(f) Notwithstanding the foregoing, if a Change in Control occurs prior to the end of the
Performance Period, the Determination Date shall be the effective date of the Change in Control and
the Committee shall determine the Eligible Units by (i) applying the performance criteria set forth
in the LTIP using the effective date of the Change in Control as the end of the Performance Period,
and by appropriately and proportionately adjusting the performance criteria for such shortened
Performance Period, if applicable, and (ii) multiplying the number of Units so determined by .3333
if the Change in Control occurs in 2010, .6667 if the Change in Control occurs in 2011, and 1 if
the Change in Control occurs in 2012 (rounding the resulting number of Eligible Units to the
nearest whole number). Upon a Change in Control, the Restricted Period for any Eligible Units
awarded hereunder (as to which such Restricted Period has not previously terminated, and including
Eligible Units as a result of the application of the previous sentence) shall automatically
terminate.

3. Termination of Restrictions. Settlement of an Eligible Unit shall be made within
30 days (with the date of payment selected by the Company in its sole discretion) of the
termination of the Restricted Period related to such Eligible Unit. Subject to the provisions of
the Plan, any settlement of an RSU pursuant to this Award shall be made through the issuance to the
Grantee (or to the executors or administrators of Grantee’s estate, after the Company’s receipt of
notification of Grantee’s death, as the case may be) of a stock certificate for a number of Shares
equal to the number of the RSUs to be settled. Following receipt of such Shares, the Grantee may
receive, hold, sell or otherwise dispose of such Shares free and clear of the restrictions imposed
under the LTIP and this Agreement.

4. Certain Payments upon a Change in Control. In the event that any settlement of
Eligible Units pursuant to this Agreement causes the aggregate payments or benefits to be made or
afforded to the Grantee under this Agreement, together with any other payments or benefits received
or to be received by the Grantee, in connection with a Change in Control (collectively, “Total
Change in Control Payments”) to exceed one hundred ten percent (110%) of the maximum amount
permitted under Section 280G of the Code to be received without incurring an excise tax under
Section 4999 of the Code (the “280G Maximum”), then the Company shall pay to Grantee an additional
amount, in cash, necessary to reimburse the Grantee on an after-tax basis, as described below, for
any excise tax payable by the Grantee under Section 4999 of the Code. If Total Change in Control
Payments, however, do not exceed one hundred ten percent (110%) of the 280G Maximum, then, at the
election of the Grantee, (i) such payments or benefits shall be payable or provided to the Grantee
over the minimum period necessary to reduce the

 

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present value of such payments or benefits to an amount which is one dollar ($1.00) less than
the 280G Maximum or (ii) the payments or benefits to be provided under this Agreement (or any other
agreement or arrangement between the Grantee and the Company) shall be reduced to the extent
necessary to avoid incurrence of the excise tax under Section 4999 of the Code, with the allocation
of the reduction among such payments and benefits to be determined by the Grantee. For purposes of
determining the amount of any payment described in this Section 4, the Grantee shall be
deemed to have been reimbursed on an after-tax basis for any excise tax described herein if the
Grantee has received (a) the amount of such excise tax and (b) the amount of any taxes (including
federal, state and local income taxes as well as any excise tax under Section 4999 of the Code)
payable on account of the reimbursement for such excise tax and any such income and excise taxes
payable on account of such reimbursement for income and excise taxes. In the event that the
Grantee and the Company fail to agree as to the amount described herein within fifteen (15) days
following a Change in Control, such amount will be determined by a firm of independent accountants
(the cost of which shall be born by the Company or its successor) mutually agreed upon by the
Grantee and the Company within thirty (30) days following the Change in Control. The Company shall
reimburse the Grantee for any additional income and/or excise taxes (and any penalties and interest
thereon) as may be determined to be payable by any taxing authority in respect of any excise tax
imposed under Section 4999 of the Code and any reimbursement described herein. The payment
described in this paragraph shall be payable on the thirtieth day following the Change in Control,
or as soon thereafter as is practicable if an accounting firm is determining the amount. For the
avoidance of doubt, Grantee shall be entitled to an additional payment as described in this
Section 4 if and only if (i) the Restricted Period of any RSUs terminates pursuant to
Section 2(f) or otherwise in connection with a Change in Control, or (ii) any RSUs become
Eligible Units pursuant to Section 2(f).

5. No Right to Continued Employment. This Agreement shall not be construed as giving
Grantee the right to be retained in the employ of the Company of its Subsidiaries, and the Company
or its Subsidiaries may at any time dismiss Grantee from employment, free from any liability or any
claim under the LTIP but subject to the terms of the Grantee’s Employment Agreement, if any.

6. Adjustments. The Committee shall make adjustments in the terms and conditions of,
and the criteria included in, this Award in recognition of unusual or nonrecurring events
(including, without limitation, the events described in Section 4.2 of the Plan) affecting
the Company, or the financial statements of the Company, or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the LTIP.

7. Amendment to Award. Subject to the restrictions contained in the Plan and the
LTIP, the Committee may waive any conditions or rights under, amend any terms of, or alter,
suspend, discontinue, cancel or terminate the Award, prospectively or retroactively; provided that
any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination
that would adversely affect the rights of the Grantee or any holder or beneficiary of the Award
shall not to that extent be effective without the consent of the Grantee, holder or beneficiary
affected.

8. Withholding of Taxes. Upon the lapse of the Restricted Period and the issuance of
Shares with respect to any portion of this Award, the Company shall satisfy any applicable
withholding obligations or withholding taxes (“Withholding Taxes”) as set forth by Internal Revenue
Service guidelines for the employer’s minimum statutory withholding with respect to Grantee and
issue Shares to the Grantee without restriction. As a condition to receiving settlement of the
RSUs hereunder, the Company may require Grantee to pay to the Company, and the Company shall have
the right and is hereby authorized to withhold from any payments hereunder or from any compensation
or other amount owing to Grantee, an amount of cash necessary for the Company to satisfy any
Withholding Taxes in respect of this
Award. In its sole and absolute discretion, the Company may satisfy the required Withholding
Taxes by withholding from the Shares otherwise issuable pursuant to settlement of the Award that
number of whole Shares necessary to satisfy Withholding Taxes with respect to such Shares based on
the Fair Market Value of the Shares as of the date the Restricted Period ends.

 

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9. Section 409A. Notwithstanding anything herein to the contrary, to the maximum
extent permitted by applicable law, the settlement of the Eligible Units to be made to the Grantee
pursuant to this Agreement is intended to qualify as a “short-term deferral” pursuant to Section
1.409A-1(b)(4) of the Regulations and this Agreement shall be interpreted consistently therewith.
However, to the extent the settlement of any Eligible RSUs upon Grantee’s termination of employment
do not qualify for an exception from treatment as non-qualified deferred compensation subject to
Section 409A of the Code, then (a) such amount shall not be payable unless Grantee’s termination of
employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the
Regulations and (b) if Grantee is a “specified employee” at such time for purposes of Section
409A(a)(2)(B)(i) of the Code, then to the extent delayed settlement of any portion of the Eligible
RSUs to which Grantee is entitled under this Agreement is required in order to avoid a prohibited
distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of the Eligible RSUs shall
not be provided to Grantee prior to the earlier of (x) the expiration of the six-month period
measured from the date of the Grantee’s “separation from service” with the Company or (y) the date
of Grantee’s death. Upon the earlier of such dates, settlement of all Eligible RSUs shall occur as
otherwise provided in this Agreement.

10. Plan and LTIP Govern. The Grantee hereby acknowledges receipt of a copy of the
LTIP and the Plan and agrees to be bound by all the terms and provisions thereof. The terms of
this Agreement are governed by the terms of the LTIP and the Plan, and in the case of any
inconsistency between the terms of this Agreement and the terms of the LTIP and the Plan, the terms
of the LTIP and the Plan shall govern.

11. Severability. If any provision of this Agreement is, or becomes, or is deemed to
be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or the Award, or
would disqualify the Plan or Award under any laws deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award, and the remainder of the Plan and Award shall remain in full force and effect.

12. Notices. All notices required to be given under this Grant shall be deemed to be
received if delivered or mailed as provided for herein, to the parties at the following addresses,
or to such other address as either party may provide in writing from time to time.

	 	 	 
	To the Company:

	 	Luminex Corporation
	 

	 	12212 Technology Blvd.
	 

	 	Austin, TX 78727
	 

	 	Attn: Corporate Secretary
	 
	 	 
	To the Grantee:

	 	The address then maintained with respect to the Grantee in the Company’s records.

 

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13. Governing Law. The validity, construction and effect of this Agreement shall be
determined in accordance with the laws of the State of Delaware without giving effect to conflicts
of laws principles.

14. Successors in Interest. This Agreement shall inure to the benefit of and be
binding upon any successor to the Company. This Agreement shall inure to the benefit of the
Grantee’s legal representatives. All obligations imposed upon the Grantee and all rights granted
to the Company under this Agreement shall be binding upon the Grantee’s heirs, executors,
administrators and successors.

15. Resolution of Disputes. Any dispute or disagreement which may arise under, or as
a result of, or in any way related to, the interpretation, construction or application of this
Agreement shall be determined by the Committee. Any determination made hereunder shall be final,
binding and conclusive on the Grantee and the Company for all purposes.

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties have caused this Restricted Share Unit Award Agreement to be
duly executed effective as of the day and year first above written.

	 	 	 	 	 
	 	LUMINEX CORPORATION

 	 
	 	By:  	 	 
	 
	 	GRANTEE:

 	 
	 	 	 
	 	Please Print 	 
	 
	 	GRANTEE:

 	 
	 	 	 
	 	Signature 	 

 

6Exhibit 10.1

Exhibit 10.1

Mindspeed Technologies, Inc.

Directors Stock Plan

as amended and restated

As of January 21, 2010

	1.	 	PURPOSE OF THE PLAN.
	 
	 	 	The purpose of the Directors Stock Plan (as amended and restated, the Plan) is to link the
compensation of non-employee directors of Mindspeed Technologies, Inc. (Mindspeed) directly
with the interests of the Mindspeed shareholders.
	 
	2.	 	PARTICIPANTS.
	 
	 	 	Participants in the Plan shall consist of directors of Mindspeed who are not employees of
Mindspeed or any of its subsidiaries (Non-Employee Director). The term “subsidiary” as used
in the Plan means a corporation more than 50% of the voting stock of which, or an
unincorporated business entity more than 50% of the equity interest in which, shall at the
time be owned directly or indirectly by Mindspeed.
	 
	3.	 	SHARES RESERVED UNDER THE PLAN.
	 
	 	 	Subject to the provisions of Section 11 of the Plan, there shall be reserved for delivery
under the Plan, from the date of inception of the Plan, an aggregate of 438,000 shares of
common stock, par value $.01 per share, of Mindspeed (Shares). Subject to the provisions of
Section 11 of the Plan, and subject to the maximum number of Shares available under the Plan,
from and after March 10, 2010, no more than 100,000 Shares shall be available for all grants
other than options (specifically Restricted Stock and Restricted Stock Units,
each as defined below), other than grants made pursuant to Section 8 of Shares or Restricted
Stock Units in lieu of cash compensation. Shares to be delivered under the Plan may be
authorized and unissued Shares, Shares held in treasury or any combination thereof. Shares
delivered under the Plan which are forfeited or otherwise terminated shall be available for
subsequent grant under the Plan.

 

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	4.	 	ADMINISTRATION OF THE PLAN.
	 
	 	 	The Plan shall be administered by the Compensation and Management Development Committee (the
Committee) of the Board, subject to the right of the Board, in its sole discretion, to
exercise or authorize another “independent committee” to exercise some or all of the
responsibilities, powers and authority vested in the Committee under the Plan. The Committee
(or the Board or any other independent committee authorized by the Board) shall have
authority to interpret the Plan, and to prescribe, amend and rescind rules and regulations
relating to the administration of the Plan, and all such interpretations, rules and
regulations shall be conclusive and binding on all persons. For purposes of the Plan,
“independent committee” shall mean a committee of the Board consisting only of directors who
are: (i) an “independent director” under applicable NASDAQ rules, (ii) a “non-employee
director” as defined under Rule 16b-3 under the Securities Exchange Act of 1934 and (iii) an
“outside director” under Section 162(m) of the Internal Revenue Code of 1986.
	 
	5.	 	EFFECTIVE DATE OF THE PLAN.
	 
	 	 	The Plan was approved by the Board and by Conexant Systems, Inc. (Conexant), the sole
shareholder of Mindspeed, and became effective on the date on which Conexant completed
the pro rata distribution of all outstanding Shares to Conexant’s shareowners (the
Distribution).

 

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	6.	 	STOCK OPTIONS.
	 
	 	 	Each Non-Employee Director shall be granted an option to purchase 8,000 Shares at the meeting
of the Board at which, or following the Annual Meeting of Shareholders at which, the
Non-Employee Director is first elected a director of Mindspeed. Following the Annual Meeting
of Shareholders held in the year 2010 and each Annual Meeting of Shareholders thereafter,
each Non-Employee Director who is re-elected a director at, or who was previously elected and
continues as a director after, that Annual Meeting shall be granted an option to purchase
4,000 Shares, provided that the Board may, by action taken on or before the day following the
date of any such Annual Meeting, defer the option grants in respect of such Annual Meeting
for up to 60 days following such Annual Meeting to a date coinciding with the date of grant
of options or other incentive compensation by Mindspeed to some or all of the officers of
Mindspeed.
	 
	 	 	The exercise price per share for each option granted under the Plan shall be the closing
price per share (the Fair Market Value) of Shares on the date of grant as reported on the
Nasdaq Stock Market or such other national securities exchange or automated inter-dealer
quotation system on which the Shares have been duly listed and approved for quotation and
trading (or on the next preceding day such stock was traded if it was not traded on the date
of grant). The purchase price of the Shares with respect to which an option or portion
thereof is exercised shall be payable in full in cash, Shares valued at their Fair Market
Value on the date of exercise, or a combination thereof. Each option may be exercised in
whole or in part at any time after it becomes exercisable; and each option shall become
exercisable in four approximately equal installments on each of the first, second, third and
fourth anniversaries of the date the option is granted. No option shall be exercisable prior
to one year nor after ten years from the date of the grant thereof; provided, however, that
if the holder of an option dies, the option may be exercised from and after the date of the
optionee’s death for a period of three years (or until the expiration date specified in the
option if earlier) even if it was not exercisable at the date of death. Moreover, if an
optionee retires after attaining age 55 and completing at least five years service as a
director, all options then held by such optionee shall be exercisable even if they were not
exercisable at such retirement date; provided, however, that each such option shall expire at
the earlier of five years from the date of the optionee’s retirement or the expiration date
specified in the option.

 

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Options granted under the Plan are not transferable other than (i) by will or by the laws of
descent and distribution; or (ii) by gift to the grantee’s spouse or natural, adopted or
step- children or grandchildren (Immediate Family Members) or to a trust for the benefit of
one or more of the grantee’s Immediate Family Members or to a family charitable trust
established by the grantee or one of the grantee’s Immediate Family Members. If an optionee
ceases to be a director while holding unexercised options, such options are then void, except
in the case of (i) death, (ii) disability, (iii) retirement after attaining age 55 and
completing at least five years service as a director, or (iv) resignation from the Board for
reasons of the antitrust laws, compliance with Mindspeed’s conflict of interest policies or
other circumstances that the Committee may determine as serving the best interests of
Mindspeed. Dividends or dividend equivalents will not be paid on Options granted under the
Plan.

 

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	7.	 	RESTRICTED STOCK UNITS.
	 
	 	 	Following the Annual Meeting of Shareholders held in the year 2010 and each Annual Meeting of
Shareholders thereafter, each Non-Employee Director who is elected a director at, or who was
previously elected and continues as a director after, that Annual Meeting shall be granted
restricted stock units (Restricted Stock Units) in an amount equal to the lesser of (a) 3,000
Restricted Stock Units or (b) the number of Restricted Stock Units (rounded to the nearest
whole unit) equaling $45,000 divided by the closing price of Shares on the date of grant as
reported on the Nasdaq Stock Market or such other national securities exchange or automated
inter-dealer quotation system on which the Shares have been duly listed and approved for
quotation and trading (or on the next preceding day such stock was traded if it was not
traded on the date of grant). For the purpose of the calculation in the previous sentence,
one Restricted Stock Unit shall equal one Share.
	 
	 	 	The recipient shall not have the rights of a shareholder until such time as the Shares
underlying the Restricted Stock Units are settled by the issuance of such Shares to the
Non-Employee Director. Upon receipt of the Shares underlying the Restricted Stock Units, the
recipient shall have the right to vote the Shares. One Share shall be issuable for each
Restricted Stock Unit awarded.
	 
	 	 	Restricted Stock Units issued under this Section 7 shall not be settled, and such Shares
shall not be issued, until ten days after (i) the recipient retires from the Board after
attaining age 55 and completing at least five years service as a director or (ii) the
recipient resigns from the Board or ceases to be a director by reason of the antitrust laws,
compliance with Mindspeed’s conflict of interest policies, death, disability or other
circumstances, and the Board has not determined (prior to the expiration of such ten day
period) that such resignation or cessation of service as a director is adverse to the best
interests of Mindspeed.

 

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	 	 	The settlement of the Restricted Stock Units as described above shall be delayed in the event
Mindspeed reasonably determines that the issuance of the Shares would constitute a violation
of federal securities laws or other applicable law. If the settlement of the Restricted
Stock Units is delayed by the provisions of this paragraph, the settlement of the Restricted
Stock Units shall occur at the earliest date at which Mindspeed reasonably determines that
issuing the Shares will not cause a violation of federal securities laws or other applicable
law. For purposes of this paragraph, the issuance of Shares that would cause inclusion in
gross income or the application of any penalty provision or other provision of the Internal
Revenue Code of 1986, as amended (the Code), is not considered a violation of applicable law.
	 
	 	 	Grants of Restricted Stock Units under the Plan are not transferable other than (i) by will
or by the laws of descent and distribution; or (ii) by gift to the grantee’s Immediate Family
Members or to a trust established for the benefit of one or more of the grantee’s Immediate
Family Members or to a family charitable trust established by the grantee or one of the
grantee’s Immediate Family Members.
	 
	8.	 	SHARES OR RESTRICTED STOCK UNITS IN LIEU OF CASH COMPENSATION.
	 
	 	 	Each Non-Employee Director may elect each year, not later than December 31 of the year
preceding the year as to which an election is to be applicable, to receive all or any portion
of the cash retainer to be paid for board, committee or other service in the following
calendar year through the issuance or transfer of Shares, valued at the closing price as
reported on the Nasdaq Stock Market or such other national securities exchange or
automated inter-dealer quotation system on which the Shares have been duly listed and
approved for quotation and trading, on the date when each payment of such retainer amount
would otherwise be made in cash (or on the next preceding day such stock was traded if it was
not traded on that date). Each Non-Employee Director making such an election may also elect
at the same time to receive the value of those Shares in the form of Restricted Stock Units.
The recipient shall not have the rights of a shareholder until such time as the Shares
underlying the Restricted Stock Units are settled by the issuance of such Shares to the
Non-Employee Director. Upon receipt of the Shares underlying the Restricted Stock Units, the
recipient shall have the right to vote the Shares. One Share shall be issuable for each
Restricted Stock Unit awarded.

 

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Restricted Stock Units issued under this Section 8 shall not be settled, and such Shares
shall not be issued, until ten days after (i) the recipient retires from the Board after
attaining age 55 and completing at least five years service as a director or (ii) the
recipient resigns from the Board or ceases to be a director by reason of the antitrust laws,
compliance with Mindspeed’s conflict of interest policies, death, disability or other
circumstances, and the Board has not determined (prior to the expiration of such ten day
period) that such resignation or cessation of service as a director is adverse to the best
interests of Mindspeed.

The settlement of the Restricted Stock Units as described above shall be delayed in the event
Mindspeed reasonably determines that the issuance of the Shares would constitute a violation
of federal securities laws or other applicable law. If the settlement of the Restricted
Stock Units is delayed by the provisions of this paragraph, the settlement of the Restricted
Stock Units shall occur at the earliest date at which Mindspeed reasonably
determines that issuing the Shares will not cause a violation of federal securities laws or
other applicable law. For purposes of this paragraph, the issuance of Shares that would
cause inclusion in gross income or the application of any penalty provision or other
provision of the Code is not considered a violation of applicable law.

 

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	9.	 	RESTRICTED STOCK.
	 
	 	 	The Board or the Committee may, from time to time, as and when either thereof deems it
appropriate, provide one or more Non-Employee Directors with a grant of Restricted Stock,
subject to the terms, conditions and restrictions established by the Board or the Committee
at the time of grant. The recipient will receive dividends in respect of the Shares
underlying the Restricted Stock, which will be reinvested in Shares, and paid if and when
such Restricted Stock vests.
	 
	 	 	Grants of Restricted Stock under the Plan are not transferable other than (i) by will or by
the laws of descent and distribution; or (ii) by gift to the grantee’s Immediate Family
Members or to a trust established for the benefit of one or more of the grantee’s Immediate
Family Members or to a family charitable trust established by the grantee or one of the
grantee’s Immediate Family Members.
	 
	10.	 	ADDITIONAL COMPENSATION.
	 
	 	 	The Board or the Committee may, from time to time, as and when either thereof deems it
appropriate, provide one or more Non-Employee Directors with additional compensation under
the Plan. Such additional compensation may be in the form of a grant of Shares, Restricted
Stock, Restricted Stock Units, options to purchase Shares or a combination
thereof, subject to the terms, conditions and restrictions established by the Board or the
Committee at the time of grant.

 

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	11.	 	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.
	 
	 	 	If there shall be any change in or affecting Shares on account of any merger, consolidation,
reorganization, recapitalization, reclassification, stock dividend, stock split or
combination, or other distribution to holders of Shares (other than a cash dividend), there
shall be made or taken such amendments to the Plan and such adjustments and actions
thereunder as the Board may deem appropriate under the circumstances.
	 
	12.	 	GOVERNMENT AND OTHER REGULATIONS.
	 
	 	 	The obligations of Mindspeed to deliver Shares upon exercise of options granted under Section
6 of the Plan, upon vesting and settlement of Restricted Stock Units pursuant to Section 7 or
an election made under Section 8 or the delivery of Shares pursuant to an election made under
Section 8 of the Plan or grants made under Section 9 or Section 10 of the Plan, shall be
subject to (i) all applicable laws, rules and regulations and such approvals by any
governmental agencies as may be required, including, without limitation, compliance with the
Securities Act of 1933, as amended, and (ii) the condition that such Shares shall have been
duly listed and approved for quotation and trading on the Nasdaq Stock Market, or such other
national securities exchange or automated inter-dealer quotation system as shall be approved
by the Board.

 

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	13.	 	AMENDMENT AND TERMINATION OF THE PLAN.
	 
	 	 	The Plan may be amended by the Board in any respect, provided that, without shareholder
approval, no amendment shall (i) materially increase the maximum number of Shares available
for delivery under the Plan (other than adjustments pursuant to Section 11 hereof), (ii)
materially increase the benefits accruing to participants under the Plan, or (iii) materially
modify the requirements as to eligibility for participation in the Plan. The Plan may also
be terminated at any time by the Board.
	 
	 	 	The Plan was amended and restated effective July 1, 2008 to adjust (in accordance with
Section 11 of the Plan) the number of Shares available for issuance under the Plan, as well
as the number of Shares subject to automatic stock option and Restricted Stock Unit grants
after giving effect to a 1-for-5 reverse stock split of the Company’s common stock, which
became effective at 11:59 p.m. EDT on June 30, 2008. Such amendment and restatement was not
subject to the approval of the Company’s shareholders.
	 
	14.	 	REPRICINGS.
	 
	 	 	Except in connection with a corporate transaction involving Mindspeed (including, without
limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination or exchange of
 shares), the terms of outstanding options may not be amended to reduce the exercise price of
outstanding options or cancel outstanding options in exchange for cash, other grants or
options with an exercise price that is less than the exercise price of the original options
without shareholder approval.

 

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	15.	 	MISCELLANEOUS.
	 
	 	 	(a) A change of control (Change of Control) shall mean any of the following occurring
after the Distribution:

(1) The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a Person) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
either (i) the then outstanding Shares or (ii) the combined voting power of the then
outstanding voting securities of Mindspeed entitled to vote generally in the election of
directors (Outstanding Voting Shares); provided however, that for purposes of this
subparagraph (1) the following acquisitions shall not constitute a Change of Control: (v)
any acquisition directly from Mindspeed, (w) any acquisition by Mindspeed, (x) any
acquisition by Conexant, (y) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by Mindspeed, Conexant or any corporation controlled by
Mindspeed or Conexant or (z) any acquisition pursuant to a transaction which complies
with (i), (ii) and (iii) of subsection (3) of this Section 14(a); or

(2) Individuals who, as of the date of the Distribution constitute the Board (the
Incumbent Board) cease for any reason to constitute at least a majority of the Board;
provided, however that any individual becoming a director subsequent to that date whose
election, or nomination for election by Mindspeed’s shareholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

 

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(3) Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of Mindspeed or the acquisition of
assets of another entity (a Corporate Transaction), in each case, unless, following such
Corporate Transaction, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the outstanding Shares and Outstanding
Voting Shares immediately prior to such Corporate Transaction beneficially own, directly
or indirectly, more than 60% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the corporation
resulting from such Corporate Transaction (including, without limitation, a corporation
which as a result of such transaction owns Mindspeed or all or substantially all of
Mindspeed’s assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Corporate Transaction,
of the outstanding Shares and Outstanding Voting Shares, as the case may be, (ii) no
Person (excluding Conexant, any employee benefit plan (or related trust) of Mindspeed, of
Conexant or of such corporation resulting from such Corporate Transaction) beneficially
owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares
of common stock of the corporation resulting from such Corporate Transaction or the
combined voting power of the then outstanding voting securities of such corporation
except to the extent that such ownership existed prior to the Corporate Transaction and
(iii) at least a majority of the members of the
board of directors of the corporation resulting from such Corporate Transaction were
members of the Incumbent Board at the time of the execution of the initial agreement, or
of the action of the Board, providing for such Corporate Transaction; or

 

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(4) Approval by Mindspeed’s shareholders of a complete liquidation or dissolution of
Mindspeed.

(b) If a Change of Control shall occur, all options then outstanding pursuant to the Plan
shall forthwith become fully exercisable whether or not then exercisable, all Restricted Stock
Units shall become fully vested and settled by the issuance of Shares, and the restrictions on
all Shares granted as Restricted Stock under the Plan shall forthwith lapse; provided,
however, that each such option shall expire at the earlier of five years from the date of the
Change of Control or the expiration date specified in the option; provided, also, that if the
event constituting a Change of Control is not also a “change in the ownership or effective
control” of Mindspeed, or a “change in the ownership of a substantial portion of the assets”
of Mindspeed, as those terms are defined under Code Section 409A, then Restricted Stock Units
shall be settled upon the Non-Employee Director’s “separation from service” within the meaning
under Code Section 409A coincident with or subsequent to such Change of Control.

(c) Nothing contained in the Plan shall be deemed to confer upon any person any right to
continue as a director of or to be associated in any other way with Mindspeed.

(d) To the extent that Federal laws do not otherwise control, the Plan and all determinations
made and actions taken pursuant hereto shall be governed by the law of the State of Delaware.

 

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