Document:

exv10w30

EXHIBIT 10.30

Mindspeed Technologies, Inc.

Deferred Compensation Plan

Effective June 27, 2003

Amended and Restated Effective November 24, 2008

 

 

Mindspeed Technologies, Inc.

Deferred Compensation Plan

Master Plan Document

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 
	 	 	 	 
	PURPOSE	 	 
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 1	 	DEFINITIONS
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 2	 	SELECTION, ENROLLMENT, ELIGIBILITY
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	 	2.1	 	 	Selection by Committee
	 	 	8	 
	 	2.2	 	 	Enrollment Requirements
	 	 	8	 
	 	2.3	 	 	Eligibility/Commencement of Participation
	 	 	8	 
	 	2.4	 	 	Termination of Participation and/or Deferrals
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 3	 	DEFERRAL COMMITMENTS/COMPANY MATCHING/CREDITING/TAXES
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	 	3.1	 	 	Minimum Deferrals
	 	 	8	 
	 	3.2	 	 	Maximum Deferral
	 	 	9	 
	 	3.3	 	 	Election to Defer/Effect of Election Form
	 	 	10	 
	 	3.4	 	 	Withholding of Annual Deferral Amounts
	 	 	10	 
	 	3.5	 	 	Annual Company Contribution Amount
	 	 	11	 
	 	3.6	 	 	Annual Company Matching Amount
	 	 	11	 
	 	3.7	 	 	Investment of Trust Assets
	 	 	11	 
	 	3.8	 	 	Vesting,
	 	 	12	 
	 	3.9	 	 	Crediting/Debiting of Account Balances
	 	 	12	 
	 	3.10	 	 	FICA and Other Taxes
	 	 	15	 
	 	3.11	 	 	Distributions
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 4	 	SHORT-TERM PAYOUT/UNFORESEEABLE FINANCIAL EMERGENCIES/WITHDRAWAL ELECTION
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	 	4.1	 	 	Short-Term Payout
	 	 	15	 
	 	4.2	 	 	Other Benefits Take Precedence Over Short-Term
	 	 	15	 
	 	4.3	 	 	Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies
	 	 	16	 
	 	4.4	 	 	Withdrawal Election
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 5	 	RETIREMENT BENEFIT
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	 	5.1	 	 	Retirement Benefit
	 	 	16	 
	 	5.2	 	 	Death Prior to Completion of Retirement Benefit
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 6	 	PRE-RETIREMENT SURVIVOR BENEFIT
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	 	6.1	 	 	Pre-Retirement Survivor Benefit
	 	 	17	 
	 	6.2	 	 	Payment of Pre-Retirement Survivor Benefit
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 7	 	TERMINATION BENEFIT
	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	 	7.1	 	 	Termination Benefit
	 	 	18	 
	 	7.2	 	 	Payment of Termination Benefit
	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 8	 	SIX MONTH DELAY OF BENEFITS TO CERTAIN EMPLOYEES
	 	 	18	 

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Master Plan Document

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 
	 	 	 	 
	ARTICLE 9	 	DISABILITY WAIVER AND BENEFIT
	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	 	9.1	 	 	Disability Benefit
	 	 	18	 
	 	9.2	 	 	Payment of Disability Benefit
	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 10	 	BENEFICIARY DESIGNATION
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	 	10.1	 	 	Beneficiary
	 	 	19	 
	 	10.2	 	 	Beneficiary Designation/Change/Spousal Consent
	 	 	19	 
	 	10.3	 	 	Acknowledgment
	 	 	19	 
	 	10.4	 	 	No Beneficiary Designation
	 	 	19	 
	 	10.5	 	 	Doubt as to Beneficiary
	 	 	19	 
	 	10.6	 	 	Discharge of Obligations
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 11	 	LEAVE OF ABSENCE
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	 	11.1	 	 	Paid Leave of Absence
	 	 	19	 
	 	11.2	 	 	Unpaid Leave of Absence
	 	 	20	 
	 	11.3	 	 	Limits on Leave of Absence
	 	 	20	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 12	 	TERMINATION, AMENDMENT OR MODIFICATION
	 	 	20	 
	 	 	 	 	 
	 	 	 	 
	 	12.1	 	 	Termination of Plan
	 	 	20	 
	 	12.2	 	 	Amendment
	 	 	21	 
	 	12.3	 	 	Plan Agreement
	 	 	21	 
	 	12.4	 	 	Effect of Payment
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 13	 	ADMINISTRATION
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	 	13.1	 	 	Committee Duties
	 	 	21	 
	 	13.2	 	 	Administration Upon Change In Control
	 	 	21	 
	 	13.3	 	 	Agents
	 	 	22	 
	 	13.4	 	 	Binding Effect of Decisions
	 	 	22	 
	 	13.5	 	 	Indemnity of Committee
	 	 	22	 
	 	13.6	 	 	Employer Information
	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 14	 	COORDINATION WITH OTHER BENEFITS
	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 15	 	CLAIMS PROCEDURES
	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	 	15.1	 	 	Presentation of Claim
	 	 	23	 
	 	15.2	 	 	Notification of Decision
	 	 	23	 
	 	15.3	 	 	Review of a Denied Claim
	 	 	23	 
	 	15.4	 	 	Decision on Review
	 	 	24	 
	 	15.5	 	 	Legal Action
	 	 	24	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 16	 	TRUST
	 	 	24	 
	 	 	 	 	 
	 	 	 	 
	 	16.1	 	 	Establishment of the Trust
	 	 	24	 
	 	16.2	 	 	Interrelationship of the Plan and the Trust
	 	 	24	 

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Deferred Compensation Plan

Master Plan Document

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 
	 	 	 	 
	 	16.3	 	 	Distributions From the Trust
	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 17	 	MISCELLANEOUS
	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	 	17.1	 	 	Status of Plan
	 	 	25	 
	 	17.2	 	 	Unsecured General Creditor
	 	 	25	 
	 	17.3	 	 	Employer’s Liability
	 	 	25	 
	 	17.4	 	 	Nonassignability
	 	 	25	 
	 	17.5	 	 	Not a Contract of Employment
	 	 	25	 
	 	17.6	 	 	Furnishing Information
	 	 	26	 
	 	17.7	 	 	Terms
	 	 	26	 
	 	17.8	 	 	Captions
	 	 	26	 
	 	17.9	 	 	Governing Law
	 	 	26	 
	 	17.10	 	 	Notice
	 	 	26	 
	 	17.11	 	 	Successors
	 	 	26	 
	 	17.12	 	 	Spouse’s Interest
	 	 	26	 
	 	17.13	 	 	Validity
	 	 	27	 
	 	17.14	 	 	Incompetent
	 	 	27	 
	 	17.15	 	 	Court Order
	 	 	27	 
	 	17.16	 	 	Distribution in the Event of Income Inclusion Under 409A
	 	 	27	 
	 	17.17	 	 	Insurance
	 	 	27	 
	 	17.18	 	 	Legal Fees To Enforce Rights After Change in Control
	 	 	28	 

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Mindspeed Technologies, Inc.

Deferred Compensation Plan

Master Plan Document

MINDSPEED TECHNOLOGIES, INC.

DEFERRED COMPENSATION PLAN

Effective June 27, 2003

Amended
and Restated Effective November 24, 2008

Purpose

     The purpose of this Plan is to provide specified benefits to a select group of management and
highly compensated Employees and Directors who contribute materially to the continued growth,
development and future business success of Mindspeed Technologies, Inc., a Delaware corporation,
and its subsidiaries, if any, that sponsor this Plan. This Plan shall be unfunded for tax purposes
and for purposes of Title I of ERISA.

ARTICLE 1

Definitions

     For purposes of this Plan, unless otherwise clearly apparent from the context, the following
phrases or terms shall have the following indicated meanings:

	1.1	 	“Account Balance” shall mean, with respect to a Participant, a credit on the records of the
Employer equal to the sum of (i) the Deferral Account balance, (ii) the vested Company
Contribution Account balance and (iii) the Company Matching Account balance. The Account
Balance, and each other specified account balance, shall be a bookkeeping entry only and shall
be utilized solely as a device for the measurement and determination of the amounts to be paid
to a Participant, or his or her designated Beneficiary, pursuant to this Plan.
	 
	1.2	 	“Annual Bonus” shall mean any compensation, in addition to Base Annual Salary relating to
services performed during any calendar year, whether or not paid in such calendar year or
included on the Federal Income Tax Form W-2 for such calendar year, payable to a Participant
as an Employee under any Employer’s annual bonus and cash incentive plans, excluding stock
options and restricted stock.
	 
	1.3	 	“Annual Company Contribution Amount” shall mean, for any one Plan Year, the amount determined
in accordance with Section 3.5.
	 
	1.4	 	“Annual Company Matching Amount” shall mean, for any one Plan Year, the amount determined in
accordance with Section 3.6.
	 
	1.5	 	“Annual Deferral Amount” shall mean that portion of a Participant’s Base Annual Salary,
Annual Bonus and Directors Fees that a Participant elects to have, and is deferred, in
accordance with Article 3, for any one Plan Year. In the event of a Participant’s Retirement,
Disability (if deferrals cease in accordance with Section 9.1), death or a Termination of
Employment prior to the end of

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Deferred Compensation Plan

Master Plan Document

	 	 	a Plan Year, such year’s Annual Deferral Amount shall be the actual amount withheld prior to
such event.
	 
	1.6	 	“Annual Installment Method” shall be an annual installment payment over the number of years
selected by the Participant in accordance with this Plan, calculated as follows: The Account
Balance of the Participant shall be calculated as of the close of business on the last
business day of the year. The annual installment shall be calculated by multiplying this
balance by a fraction, the numerator of which is one, and the denominator of which is the
remaining number of annual payments due the Participant. By way of example, if the Participant
elects a 10-year Annual Installment Method, the first payment shall be 1/10 of the Account
Balance, calculated as described in this definition. The following year, the payment shall be
1/9 of the Account Balance, calculated as described in this definition. Each annual
installment after the first installment shall be paid in the first sixty (60) days of each
calendar year following the calendar year of the first installment.
	 
	1.7	 	“Base Annual Salary” shall mean the annual cash compensation relating to services performed
during any calendar year, whether or not paid in such calendar year or included on the Federal
Income Tax Form W-2 for such calendar year, excluding bonuses, commissions, overtime, fringe
benefits, stock options, relocation expenses, incentive payments, non-monetary awards,
directors fees and other fees, automobile and other allowances paid to a Participant for
employment services rendered (whether or not such allowances are included in the Employee’s
gross income). Base Annual Salary shall be calculated before reduction for compensation
voluntarily deferred or contributed by the Participant pursuant to all qualified or
non-qualified plans of any Employer and shall be calculated to include amounts not otherwise
included in the Participant’s gross income under Code Sections 125, 402(e)(3), 402(h), or
403(b) pursuant to plans established by any Employer; provided, however, that all such amounts
will be included in compensation only to the extent that, had there been no such plan, the
amount would have been payable in cash to the Employee.
	 
	1.8	 	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated
in accordance with Article 10, that are entitled to receive benefits under this Plan upon the
death of a Participant.
	 
	1.9	 	“Beneficiary Designation Form” shall mean the form established from time to time by the
Committee that a Participant completes, signs and returns to the Committee to designate one or
more Beneficiaries.
	 
	1.10	 	“Board” shall mean the board of directors of the Company.
	 
	1.11	 	“Business Combination” shall have the meaning set forth in Section 1.12.
	 
	1.12	 	“Change in Control” shall mean the first to occur of any of the following events:

	 	(a)	 	The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 35% or more of either (i) the then outstanding
            shares of common stock of the Company (the “Outstanding Company Common Stock”)

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Master Plan Document

	 	 	 	or (ii) the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this subsection
(a), the following acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Company, (ii) any acquisition by the Company, (iii)
any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company or (iv) any
acquisition pursuant to a transaction which complies with clauses (i), (ii) and
(iii) of subsection (c) of this Section 1.12; or
	 
	 	(b)	 	Individuals who, as of the date this Trust was established, constituted 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 the
date thereof whose election, or nomination for election by the Company’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
	 
	 	(c)	 	Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company or the acquisition
of assets of another entity (a “Business Combination”), in each case, unless, following
such Business Combination, (i) all or substantially all of the individuals and entities
who were the beneficial owners, respectively, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities immediately prior to such Business
Combination 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 Business Combination
(including, without limitation, a corporation which as a result of such transaction
owns the Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no
Person (excluding the Company, any employee benefit plan (or related trust) of the
Company or of such corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 35% or more of, respectively, the then outstanding shares
of common stock of the corporation resulting from such Business Combination 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 Business Combination and
(iii) at least a majority of the members of the board of directors of the corporation
resulting from such Business Combination 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 Business Combination; or

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Master Plan Document

	 	(d)	 	Approval by the Company’s shareholders of a complete liquidation or dissolution
of the Company.

	1.13	 	“Claimant” shall have the meaning set forth in Section 15.1.
	 
	1.14	 	“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time.
	 
	1.15	 	“Committee” shall mean the committee described in Article 13.
	 
	1.16	 	“Company” shall mean Mindspeed Technologies, Inc., a Delaware corporation, and any successor
to all or substantially all of the Company’s assets or business.
	 
	1.17	 	“Company Contribution Account” shall mean (i) the sum of the Participant’s Annual Company
Contribution Amounts, plus (ii) amounts credited (net of amounts debited) in accordance with
all of the applicable crediting provisions of this Plan that relate to the Participant’s
Company Contribution Account, less (iii) all distributions made to the Participant or his or
her Beneficiary pursuant to this Plan that relate to the Participant’s Company Contribution
Account.
	 
	1.18	 	“Company Matching Account” shall mean (i) the sum of all of a Participant’s Annual Company
Matching Amounts, plus (ii) amounts credited (net of amounts debited) in accordance with all
of the applicable crediting provisions of this Plan that relate to the Participant’s Company
Matching Account, less (iii) all distributions made to the Participant or his or her
Beneficiary pursuant to this Plan that relate to the Participant’s Company Matching Account.
	 
	1.19	 	“Deduction Limitation” shall mean the following described limitation on a benefit that may
otherwise be distributable pursuant to the provisions of this Plan. Except as otherwise
provided, this limitation shall be applied to all distributions that are “subject to the
Deduction Limitation” under this Plan. If an Employer determines in good faith prior to a
Change in Control that there is a reasonable likelihood that any compensation paid to a
Participant for a taxable year of the Employer would not be deductible by the Employer solely
by reason of the limitation under Code Section 162(m), then to the extent deemed necessary by
the Employer to ensure that the entire amount of any distribution to the Participant pursuant
to this Plan prior to the Change in Control is deductible, the Employer may defer all or any
portion of a distribution under this Plan. Any amounts deferred pursuant to this limitation
shall continue to be credited/debited with additional amounts in accordance with Section 3.9
below, even if such amount is being paid out in installments. The amounts so deferred and
amounts credited thereon shall be distributed to the Participant or his or her Beneficiary (in
the event of the Participant’s death) at the earliest possible date, as determined by the
Employer in good faith, on which the deductibility of compensation paid or payable to the
Participant for the taxable year of the Employer during which the distribution is made will
not be limited by Section 162(m), or if earlier, the effective date of a Change in Control,
but only if such Change in Control would be a permissible payment event under Code Section
409A and related Treasury guidance and Regulations. Notwithstanding anything to the contrary
in this Plan, the Deduction Limitation shall not apply to any distributions made after a
Change in Control.
	 
	1.20	 	“Deferral Account” shall mean (i) the sum of all of a Participant’s Annual Deferral Amounts,
plus (ii) amounts credited (net of amounts debited) in accordance with all of the applicable
crediting provisions of this Plan that relate to the Participant’s Deferral Account, less
(iii) all distributions

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Master Plan Document

	 	 	made to the Participant or his or her Beneficiary pursuant to this Plan that relate to his
or her Deferral Account.
	 
	1.21	 	“Director” shall mean any member of the board of directors of any Employer.
	 
	1.22	 	“Directors Fees” shall mean the annual fees paid by any Employer, including retainer fees and
meetings fees, as compensation for serving on the board of directors.
	 
	1.23	 	“Disability” shall mean that a participant is (i) unable 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 can be expected to last for a continuous period of not less
than twelve (12) months or (ii) by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, receiving income replacement benefits
for a period of not less than three (3) months under an accident or health plan covering
employees of the Participant’s Employer.
	 
	1.24	 	“Disability Benefit” shall mean the benefit set forth in Article 9.
	 
	1.25	 	“Election Form” shall mean the form established from time to time by the Committee that a
Participant completes, signs and returns to the Committee to make an election under the Plan.
	 
	1.26	 	“Employee” shall mean a person who is an employee of any Employer.
	 
	1.27	 	“Employer(s)” shall mean the Company and/or any of its subsidiaries (now in existence or
hereafter formed or acquired) that have been selected by the Board to participate in the Plan
and have adopted the Plan as a sponsor.
	 
	1.28	 	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended
from time to time.
	 
	1.29	 	“Exchange Act” shall have the meaning set forth in Section 1.12.
	 
	1.30	 	“Executive Committee” shall mean the Company’s executive committee.
	 
	1.31	 	“First Plan Year” shall mean the period beginning June 27, 2003 and ending December 31, 2003.
	 
	1.32	 	“401(k) Plan” shall be that certain Mindspeed Technologies, Inc. Retirement Savings Plan
adopted by the Company.
	 
	1.33	 	“Incumbent Board” shall have the meaning set forth in Section 1.12.
	 
	1.34	 	“Outstanding Company Common Stock” shall have the meaning set forth in Section 1.12.
	 
	1.35	 	“Outstanding Company Voting Securities” shall have the meaning set forth in Section 1.12.
	 
	1.36	 	“Participant” shall mean any Employee or Director (i) who is selected to participate in the
Plan, (ii) who elects to participate in the Plan, (iii) who signs a Plan Agreement, an
Election Form and a Beneficiary Designation Form, (iv) whose signed Plan Agreement, Election
Form and Beneficiary Designation Form are accepted by the Committee, (v) who commences
participation

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	 	 	in the Plan, and (vi) whose Plan Agreement has not terminated. A spouse or former spouse of
a Participant shall not be treated as a Participant in the Plan or have an account balance
under the Plan, even if he or she has an interest in the Participant’s benefits under the
Plan as a result of applicable law or property settlements resulting from legal separation
or divorce.
	 
	1.37	 	“Person” shall have the meaning set forth in Section 1.12.
	 
	1.38	 	“Plan” shall mean the Mindspeed Technologies, Inc. Deferred Compensation Plan, effective June
27, 2003, and amended and restated effective as of November 13, 2008, which shall be evidenced
by this instrument and by each Plan Agreement, as they may be amended from time to time.
	 
	1.39	 	“Plan Agreement” shall mean a written agreement, as may be amended from time to time, which
is entered into by and between an Employer and a Participant. Each Plan Agreement executed by
a Participant and the Participant’s Employer shall provide for the entire benefit to which
such Participant is entitled under the Plan; should there be more than one Plan Agreement, the
Plan Agreement bearing the latest date of acceptance by the Employer shall supersede all
previous Plan Agreements in their entirety and shall govern such entitlement. The terms of any
Plan Agreement may be different for any Participant, and any Plan Agreement may provide
additional benefits not set forth in the Plan or limit the benefits otherwise provided under
the Plan; provided, however, that any such additional benefits or benefit limitations must be
agreed to by both the Employer and the Participant.
	 
	1.40	 	“Plan Year” shall, except for the First Plan Year, mean a period beginning on January 1 of
each calendar year and continuing through December 31 of such calendar year.
	 
	1.41	 	“Post-2004 Account” shall mean a subaccount of the Participant’s Account Balance which shall
contain all amounts therein that were credited or first vested on or after January 1, 2005,
plus the investment experience thereon, as credited or debited under Section 3.9 of the Plan.
	 
	1.42	 	“Pre-2005 Account” shall mean a subaccount of the Participant’s Account Balance which shall
contain all amounts therein that were both credited and fully vested on or before December 31,
2004, plus the investment experience thereon, as credited or debited under Section 3.9 of the
Plan.
	 
	1.43	 	“Pre-Retirement Survivor Benefit” shall mean the benefit set forth in Article 6.
	 
	1.44	 	“Retirement”, “Retire(s)” or “Retired” shall mean, (1) with respect to an Employee who is not
then a Director, separation from service with all Employers for any reason other than a leave
of absence, death or Disability, as determined in accordance with Code Section 409A and
related Treasury guidance and Regulations at such time as the sum of the Employee’s age and
Years of Service equals at least fifty-five (55); and (2) with respect to a Director who is
not then an Employee, separation from service as a Director for all Employers on or after the
attainment of age seventy (70). If a Participant is both an Employee and a Director, or
changes status between the two roles, whether there has been a separation from service upon a
Retirement shall be determined under the applicable Treasury guidance and Regulations under
Code Section 409A.
	 
	1.45	 	“Retirement Benefit” shall mean the benefit set forth in Article 5.

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	1.46	 	“Short-Term Payout” shall mean the payout set forth in Section 4.1.
	 
	1.47	 	“Stock” shall mean Mindspeed Technologies, Inc. common stock, $1.00 par value, or any other
equity securities of the Company designated by the Committee.
	 
	1.48	 	“Termination Benefit” shall mean the benefit set forth in Article 7.
	 
	1.49	 	“Termination of Employment” shall mean the separation from service with all Employers,
voluntarily or involuntarily, for any reason other than Retirement, Disability, death or an
authorized leave of absence, as determined in accordance with Code Section 409A and related
Treasury guidance and Regulations. If a Participant is both an Employee and a Director, or
changes status between the two, whether there has been a separation from service shall be
determined under the applicable Treasury guidance and Regulations under Code Section 409A.
	 
	1.50	 	“Trust” shall mean the trust established pursuant to that certain Trust Agreement, dated as
of June 27, 2003, between the Company and the Trustee named therein, as amended from time to
time.
	 
	1.51	 	“Unforeseeable Financial Emergency” shall mean a severe financial hardship as defined in
Treasury Regulations Section 1.409A-3(i)(3)(ii). Accordingly, without further limiting the
definition, an unforeseeable emergency shall include a severe financial hardship to the
Participant resulting from an illness or accident of the Participant, the Participant’s
spouse, the Participant’s Beneficiary, or the Participant’s dependent (as defined in Code
Section 152, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B)); loss of the
Participant’s property due to casualty (including the need to rebuild a home following damage
to a home not otherwise covered by insurance, for example, not as a result of a natural
disaster); or other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant. For example, the imminent foreclosure of or
eviction from the Participant’s primary residence may constitute an unforeseeable emergency.
In addition, the need to pay for medical expenses, including non-refundable deductibles, as
well as for the costs of prescription drug medication, may constitute an unforeseeable
emergency. Finally, the need to pay for the funeral expenses of a spouse, a Beneficiary, or a
dependent (as defined in Code Section 152, without regard to Code Section 152(b)(1), (b)(2),
and (d)(1)(B)) may also constitute an unforeseeable emergency. The determination of whether
an “Unforeseeable Financial Emergency” exists shall be determined in the sole discretion of
the Committee.
	 
	1.52	 	“Years of Service” shall mean the total number of full years in which a Participant has been
employed by one or more Employers. For purposes of this definition, any time in which a
Participant was employed by Rockwell International Corporation, a Delaware corporation, and/or
Conexant Systems, Inc., a Delaware corporation, shall be counted. A year of employment shall
be a 365-day period (or 366-day period in the case of a leap year) that, for the first year of
employment, commences on the Employee’s date of hiring and that, for any subsequent year,
commences on an anniversary of that hiring date. Any partial year of employment shall not be
counted. Notwithstanding any provision of this Plan that may be construed to the contrary,
for purposes of this definition, the Committee may, in its sole and absolute discretion, deem
a Participant to be credited with additional years of employment for purpose of calculating
his or her Years of Service.

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ARTICLE 2

Selection, Enrollment, Eligibility 

	2.1	 	Selection by Committee. Participation in the Plan shall be limited to a select group
of management and highly compensated Employees and Directors of the Employers, as determined
by the Committee in its sole and absolute discretion. From that group, the Committee shall
select, in its sole and absolute discretion, Employees and Directors to participate in the
Plan.
	 
	2.2	 	Enrollment Requirements. As a condition to participation, each selected Employee or
Director shall complete, execute and return to the Committee a Plan Agreement, an Election
Form and a Beneficiary Designation Form, all within thirty (30) days after he or she is first
selected to participate in the Plan. In subsequent Plan Years, each selected Employee or
Director must complete these requirements prior to the first day of such Plan Year. In
addition, the Committee shall establish from time to time such other enrollment requirements
as it determines in its sole and absolute discretion are necessary.
	 
	2.3	 	Eligibility/Commencement of Participation. Provided an Employee or Director selected
to participate in the Plan has met all enrollment requirements set forth in this Plan and
required by the Committee, including returning all required documents to the Committee within
the specified time period, that Employee or Director shall commence participation in the Plan
upon the date determined by the Committee. The Participant shall not be permitted to defer
under this Plan any portion of his or her Base Salary, Bonus, and/or Directors Fees that are
paid with respect to services performed prior to his or her commencement date, except to the
extent permissible under Code Section 409A and related Treasury guidance or Regulations. If
an Employee or a Director fails to meet all such requirements within the period required by
the Committee, that Employee or Director shall not be eligible to participate in the Plan
until the first day of the Plan Year following the delivery to and acceptance by the Committee
of the required documents.
	 
	2.4	 	Termination of Participation and/or Deferrals. If the Committee determines in good
faith that a Participant no longer qualifies as a member of a select group of management or
highly compensated employees, as membership in such group is determined in accordance with
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the right, in its
sole and absolute discretion, to (i) terminate any deferral election the Participant has made
for the remainder of the Plan Year in which the Participant’s membership status changes, (ii)
prevent the Participant from making future deferral elections and/or (iii) take further action
that the Committee deems appropriate. Notwithstanding the foregoing, in the event of a
Termination of the Plan, the termination of affected Participant’s eligibility for
participation in the Plan shall not be governed by this Section 2.4, but rather shall be
governed by the terms of this Plan until such time as the Participant’s Account Balance is
paid in accordance with the terms of the Plan.

ARTICLE 3

Deferral Commitments/Company Matching/Crediting/Taxes 

	3.1	 	Minimum Deferrals.

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	 	(a)	 	Base Annual Salary. Annual Bonus and Director’s Fees. For each Plan
Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base
Annual Salary, Annual Bonus and/or Director’s Fees in the following minimum amounts for
each deferral elected:

	 	 	 	 	 
	Deferral	 	Minimum Amount
	Base Annual Salary
	 	$	2,000	 
	Annual Bonus
	 	$	2,000	 
	Directors Fees
	 	$	2,000	 

	 	 	 	If an election is made for less than stated minimum amounts, or if no election is
made, the amount deferred shall be zero.
	 
	 	(b)	 	Short Plan Year. Notwithstanding the foregoing, if a Participant first
becomes a Participant after the first day of a Plan Year, or in the case of the first
Plan Year of the Plan itself, the minimum Base Annual Salary deferral shall be an
amount equal to the minimum set forth above, multiplied by a fraction, the numerator of
which is the number of complete months remaining in the Plan Year and the denominator
of which is twelve (12).

	3.2	 	Maximum Deferral.

	 	(a)	 	Base Annual Salary, Annual Bonus and Directors Fees. For each Plan
Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Base
Annual Salary, Annual Bonus and/or Directors Fees up to the following maximum
percentages for each deferral elected:

	 	 	 	 	 
	Deferral	 	Maximum Percentage
	Base Annual Salary
	 	 	100	%
	Annual Bonus
	 	 	100	%
	Directors Fees
	 	 	100	%

	 	(b)	 	Notwithstanding the foregoing, if a Participant first becomes a Participant
after the first day of a Plan Year, or in the case of the first Plan Year of the Plan
itself, the maximum Annual Deferral Amount, with respect to Base Annual Salary, Annual
Bonus and Directors Fees shall be limited to the amount of compensation not yet earned
by the Participant as of the date the Participant submits a Plan Agreement and Election
Form to the Committee for acceptance.

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	3.3	 	Election to Defer/Effect of Election Form.

	 	(a)	 	First Plan Year. In connection with a Participant’s commencement of
participation in the Plan, the Participant shall make an irrevocable deferral election
for the Plan Year in which the Participant commences participation in the Plan, along
with such other elections as the Committee deems necessary or desirable under the Plan.
For these elections to be valid, the Election Form must be completed and signed by the
Participant, timely delivered to the Committee (in accordance with Section 2.2 above)
and accepted by the Committee. As a condition to making such irrevocable deferral
election for the Plan Year, such Participant shall make an irrevocable election under
such Election Form to make the maximum “Basic Pre-Tax Contributions” and “Supplemental
Pre-Tax Contributions” (as such terms are defined in the 401(k) Plan) permitted under
the terms of the 401(k) Plan for such Plan Year.
	 
	 	(b)	 	Subsequent Plan Years. For each succeeding Plan Year, an irrevocable
deferral election for that Plan Year, and such other elections as the Committee deems
necessary or desirable under the Plan, shall be made by timely delivering to the
Committee, in accordance with its rules and procedures, before the end of the Plan Year
preceding the Plan Year for which the election is made, a new Election Form. If no such
Election Form is timely delivered for a Plan Year, the Annual Deferral Amount shall be
zero for that Plan Year. As a condition to making such irrevocable deferral election
for the Plan Year, such Participant shall make an irrevocable election under such
Election Form to make the maximum “Basic Pre-Tax Contributions” and “Supplemental
Pre-Tax Contributions” (as such terms are defined in the 401(k) Plan) permitted under
the terms of the 401(k) Plan for such Plan Year.
	 
	 	(c)	 	Performance-Based Compensation. Notwithstanding the foregoing, the
Committee may, in its sole discretion, determine that an irrevocable deferral election
pertaining to performance-based compensation may be made by the Participant’s timely
delivering an Election Form to the Committee, in accordance with its rules and
procedures, no later than six (6) months before the end of the performance service
period. “Performance-based compensation” shall be compensation from an Employer based
on services performed over a period of at least twelve (12) months, in accordance with
Code Section 409A and related Treasury guidance or Regulations. Beginning January 1,
2009 (or such other effective date of the final Treasury Regulations), the definition
of “performance-based compensation” in the final Treasury Regulations shall govern.
	 
	 	(d)	 	Transition Rules. Notwithstanding the other provisions of this Section
3.3, the Committee may, in its sole discretion, permit deferrals pursuant to
irrevocable deferral elections as permitted in the transition guidance established by
the Internal Revenue Service under Code Section 409A.

	3.4	 	Withholding of Annual Deferral Amounts. For each Plan Year, the Base Annual Salary
portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Base
Annual Salary payroll in equal amounts, as adjusted from time to time for increases and
decreases in Base Annual Salary. The Annual Bonus and/or Directors Fees portion of the Annual
Deferral Amount shall be withheld at the time the Annual Bonus or Directors Fees are or
otherwise would be paid to the Participant, whether or not this occurs during the Plan Year
itself.

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	3.5	 	Annual Company Contribution Amount. For each Plan Year, an Employer, in its sole and
absolute discretion, may, but is not required to, credit any amount it desires to any
Participant’s Company Contribution Account under this Plan, which amount shall be for that
Participant the Annual Company Contribution Amount for that Plan Year. The amount so credited
to a Participant may be smaller or larger than the amount credited to any other Participant,
and the amount credited to any Participant for a Plan Year may be zero, even though one or
more other Participants receive an Annual Company Contribution Amount for that Plan Year. The
Annual Company Contribution Amount, if any, shall be credited as of the date determined by the
Committee in its sole and absolute discretion. If a Participant is not employed by an Employer
as of the last day of a Plan Year for a reason other than his or her Retirement or death while
employed, the Annual Company Contribution Amount for that Plan Year shall be zero.
	 
	3.6	 	Annual Company Matching Amount. A Participant’s Annual Company Matching Amount for
any Plan Year shall be equal to the match the Participant would have received under the 401(k)
Plan during the corresponding plan year of the 401(k) Plan, but for (i) his or her
Participation in this Plan and (ii) the limitations imposed under Code Sections 401(a)(17),
401(k)(3), 402(g) and 415, less the match actually credited to the Participant’s 401(k) Plan
account. If a Participant is not employed by an Employer, or is no longer providing services
as a Director, as of the last business day of a Plan Year other than by reason of his or her
Retirement or death, the Annual Company Matching Amount for such Plan Year shall be zero. In
the event of Retirement or death, a Participant shall be credited with the Annual Company
Matching Amount for the Plan Year in which he or she Retires or dies. A Participant’s Annual
Company Matching Amount for any Plan Year shall be equal to: (a) the “Company Matching
Contribution” (as such term is defined in the 401(k) Plan) that would have been made on behalf
of such Participant under the 401(k) Plan during the corresponding plan year of the 401(k)
Plan assuming: (i) his or her “Basic Pre-Tax Contributions” and “Supplemental Pre-Tax
Contributions” (as such terms are defined in the 401(k) Plan) included the Base Annual Salary
portion of his or her Annual Deferral Amount for the Plan Year, (ii) his or her “Base
Compensation” (as such term is defined in the 401(k) Plan) equaled his or her Base Annual
Salary for the Plan Year, and (iii) the limitations imposed under Code Sections 401(a)(17),
401(k), 401(m), 402(g) and 415 did not apply for purposes of determining his or her “Company
Matching Contributions” under the 401(k) Plan, less (b) the “Company Matching Contributions”
actually credited to such Participant’s 401(k) Plan account for such Plan Year. Such
Participant’s Annual Company Matching Amount for any Plan Year shall be credited during such
Plan Year as the Base Annual Salary portion of the Annual Deferral Amount for such Participant
is withheld from each regularly scheduled Base Annual Salary payroll in accordance with
Section 3.4. As a condition to the crediting of the Annual Company Matching Amount for such
Participant for the Plan Year, such Participant shall make an irrevocable election under such
Participant’s Election Form for such Plan Year to make the maximum “Basic Pre-Tax
Contributions” and “Supplemental Pre-Tax Contributions” (as such terms are defined in the
401(k) Plan) permitted under the terms of the 401(k) Plan for such Plan Year.
	 
	3.7	 	Investment of Trust Assets. The Trustee of the Trust shall be authorized, upon
written instructions received from the Committee or investment manager appointed by the
Committee, to invest and reinvest the assets of the Trust in accordance with the applicable
Trust Agreement, including the disposition of Stock and reinvestment of the proceeds in one or
more investment vehicles designated by the Committee.

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	3.8	 	Vesting,

	 	(a)	 	A Participant shall at all times be 100% vested in his or her Deferral Account
and Matching Account.
	 
	 	(b)	 	A Participant shall be vested in his or her Company Contribution Account in
accordance with the vesting schedules established by the Committee, in its sole and
absolute discretion, for each Annual Company Contribution Amount (and amounts credited
or debited thereon) at the time each such Annual Company Contribution Amount is first
credited to the Participant’s Account Balance under the Plan.
	 
	 	(c)	 	Notwithstanding anything to the contrary contained in this Section 3.8, in the
event of a Change in Control, a Participant’s Company Contribution Account shall
immediately become 100% vested (if it is not already vested in accordance with the
above vesting schedules).
	 
	 	(d)	 	Notwithstanding subsection (c), the vesting schedule for a Participant’s
Company Contribution Account shall not be accelerated to the extent that the Committee
determines that such acceleration would cause the deduction limitations of Section 280G
of the Code to become effective. In the event that all of a Participant’s Company
Contribution Account is not vested pursuant to such a determination, the Participant
may request independent verification of the Committee’s calculations with respect to
the application of Section 280G. In such case, the Committee must provide to the
Participant within fifteen (15) business days of such a request an opinion from a
nationally recognized accounting firm selected by the Participant (the “Accounting
Firm”). The opinion shall state the Accounting Firm’s opinion that any limitation in
the vested percentage hereunder is necessary to avoid the limits of Section 280G and
contain supporting calculations. The cost of such opinion shall be paid for by the
Company.

	3.9	 	Crediting/Debiting of Account Balances. In accordance with, and subject to, the
rules and procedures that are established from time to time by the Committee, in its sole and
absolute discretion, amounts shall be credited or debited to a Participant’s Account Balance
in accordance with the following rules:

	 	(a)	 	Election of Measurement Funds. Subject to Section 3.9(f) below, a
Participant, in connection with his or her initial deferral election in accordance with
Section 3.3(a) above, shall elect, on the Election Form, one or more Measurement
Fund(s) (as described in Section 3.9(c) below) to be used to determine the additional
amounts to be credited to his or her Account Balance for the first business day in
which the Participant commences participation in the Plan and continuing thereafter for
each subsequent day in which the Participant participates in the Plan, unless changed
in accordance with the next sentence. Subject to Section 3.9(f) below, commencing with
the first business day that follows the Participant’s commencement of participation in
the Plan and continuing thereafter for each subsequent day in which the Participant
participates in the Plan, the Participant may (but is not required to) elect, by
submitting an Election Form to the Committee that is accepted by the Committee, to add
or delete one or more Measurement Fund(s) to be used to determine the additional
amounts to be credited to his or her Account Balance, or to change the portion of his
or her Account Balance allocated to each previously or newly

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	 	 	 	elected Measurement Fund. If an election is made in accordance with the previous
sentence, it shall apply to the next business day and continue thereafter for each
subsequent day in which the Participant participates in the Plan, unless changed in
accordance with the previous sentence. Notwithstanding any provision of this Plan
that may be construed to the contrary, no more than one such election may be made in
any calendar quarter by a Participant without the prior written consent of the
Committee.
	 
	 	(b)	 	Proportionate Allocation. In making any election described in Section
3.9(a) above, the Participant shall specify on the Election Form, in increments of five
percentage points (5%), the percentage of his or her Account Balance to be allocated to
a Measurement Fund (as if the Participant was making an investment in that Measurement
Fund with that portion of his or her Account Balance).
	 
	 	(c)	 	Measurement Funds. From time to time, the Committee in its sole and
absolute discretion shall select and announce to Participants its selection of mutual
funds, insurance company separate accounts, indexed rates or other methods (each, a
“Measurement Fund”), for the purpose of providing the basis on which gains and losses
shall be attributed to Account Balances under the Plan. The Committee may, in its sole
and absolute discretion, discontinue, substitute or add a Measurement Fund at any time.
Each such action will take effect as of the first day of the calendar quarter that
follows by thirty (30) days the day on which the Committee gives Participants advance
written notice of such change. Subject to Section 3.9(f) below, the Participant may
elect one or more of the following Measurement Funds for purposes of crediting/debiting
additional amounts to his or her Account Balance:

	 	(1)	 	Fidelity Contrafund;
	 
	 	(2)	 	Fidelity Growth;
	 
	 	(3)	 	Fidelity High Income;
	 
	 	(4)	 	Fidelity Money Market;
	 
	 	(5)	 	PIMCO Short-Term Bond;
	 
	 	(6)	 	T. Rowe Price Equity Income;
	 
	 	(7)	 	T. Rowe Price International Stock;
	 
	 	(8)	 	Janus Aspen Series Growth;
	 
	 	(9)	 	Janus Aspen Series Capital Appreciation;
	 
	 	(10)	 	Janus Aspen Series Worldwide;
	 
	 	(11)	 	Janus Aspen Series High Yield;
	 
	 	(12)	 	BT Small Cap Index;

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	 	(13)	 	BT Equity 500 Index;
	 
	 	(14)	 	BT EAFE Equity Index;
	 
	 	(15)	 	INVESCO VIF Clue Chip Growth;
	 
	 	(16)	 	INVESCO VIF Dynamics;
	 
	 	(17)	 	INVESCO VIF Financial Services;
	 
	 	(18)	 	INVESCO VIF Health Sciences;
	 
	 	(19)	 	INVESCO VIF Technology; and
	 
	 	(20)	 	INVESCO VIF Telecommunications.

	 	(d)	 	Crediting or Debiting Method. The performance of each elected
Measurement Fund (either positive or negative) will be determined by the Committee, in
its reasonable discretion, based on the performance of the Measurement Funds
themselves. A Participant’s Account Balance shall be credited or debited on a daily
basis based on the performance of each Measurement Fund selected by the Participant, as
determined by the Committee in its sole and absolute discretion, as though (i) a
Participant’s Account Balance were invested in the Measurement Fund(s) selected by the
Participant, in the percentages applicable to such day, as of the close of business on
such day, at the closing price on such date; (ii) the portion of the Annual Deferral
Amount that was actually deferred during any day were invested in the Measurement
Fund(s) selected by the Participant, in the percentages applicable to such day, no
later than the close of business on the first business day after the day on which such
amounts are actually deferred from the Participant’s Base Annual Salary through
reductions in his or her payroll, at the closing price on such date; and (iii) any
distribution made to a Participant that decreases such Participant’s Account Balance
ceased being invested in the Measurement Fund(s), in the percentages applicable to such
day, no earlier than one business day prior to the distribution, at the closing price
on such date. The Participant’s Annual Company Matching Amount shall be credited to his
or her Company Matching Account for purposes of this Section 3.9(d) as of the close of
business on the last business day of the Plan Year to which it relates.
	 
	 	(e)	 	No Actual Investment. Notwithstanding any other provision of this Plan
that may be interpreted to the contrary, the Measurement Funds are to be used for
measurement purposes only, and a Participant’s election of any such Measurement Fund,
the allocation to his or her Account Balance thereto, the calculation of additional
amounts and the crediting or debiting of such amounts to a Participant’s Account
Balance shall not be considered or construed in any manner as an actual investment of
his or her Account Balance in any such Measurement Fund. In the event that the Company
or the Trustee (as that term is defined in the Trust), in its own discretion, decides
to invest funds in any or all of the Measurement Funds, no Participant shall have any
rights in or to such investments themselves. Without limiting the foregoing, a
Participant’s Account Balance shall at all times be a bookkeeping entry only and shall
not represent any investment

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	 	 	 	made on his or her behalf by the Company or the Trust; the Participant shall at all
times remain an unsecured creditor of the Company.

	3.10	 	FICA and Other Taxes. 

	 	(a)	 	Annual Deferral Amounts. For each Plan Year in which an Annual
Deferral Amount is being withheld from a Participant, the Participant’s Employer(s)
shall withhold from that portion of the Participant’s Base Annual Salary and Bonus that
is not being deferred, in a manner determined by the Employer(s), the Participant’s
share of FICA, other employment taxes and other employee contributions on such Annual
Deferral Amount. If necessary, the Committee may reduce the Annual Deferral Amount in
order to comply with this Section 3.10.
	 
	 	(b)	 	Company Matching Amounts. When a participant becomes vested in a
portion of his or her Company Matching Account, the Participant’s Employer(s) shall
withhold from the Participant’s Base Annual Salary and/or Bonus that is not deferred,
in a manner determined by the Employer(s), the Participant’s share of FICA and other
employment taxes. If necessary, the Committee may reduce the vested portion of the
Participant’s Company Matching Account in order to comply with this Section 3.10.

	3.11	 	Distributions. The Participant’s Employer(s), or the trustee of the Trust, shall
withhold from any payments made to a Participant under this Plan all federal, state and local
income, employment and other taxes required to be withheld by the Employer(s), or the trustee
of the Trust, in connection with such payments, in amounts and in a manner to be determined in
the sole and absolute discretion of the Employer(s) and the trustee of the Trust.

ARTICLE 4

Short-Term Payout/Unforeseeable Financial Emergencies/Withdrawal Election

	4.1	 	Short-Term Payout. In connection with each election to defer an Annual Deferral
Amount, a participant may irrevocably elect to receive a future “Short-Term Payout” from the
Plan with respect to such Annual Deferral Amount. Subject to the Deduction Limitation, the
Short-Term Payout shall be a lump sum payment in an amount that is equal to the Annual
Deferral plus amounts credited or debited in the manner provided in Section 3.9 above on that
amount, determined at the time that the Short-Term Payout becomes payable (rather than the
date of a Termination of Employment). Subject to the Deduction Limitation and the other terms
and conditions of this Plan, each Short-Term Payout elected shall be paid out during a 60 day
period commencing immediately after the last day of any Plan Year designated by the
Participant that is at least three Plan Years after the Plan Year in which the Annual Deferral
Amount is actually deferred. By way of example, if a three year Short-Term Payout is elected
for Annual Deferral Amounts that are deferred in the Plan Year commencing January 1, 2001, the
three year Short-Term Payout would become payable during a 60 day period commencing January 1,
2005.
	 
	4.2	 	Other Benefits Take Precedence Over Short-Term. Should an event occur that triggers
a benefit under Article 5, 6, 7 or 9, any Annual Deferral Amount, plus amounts credited or
debited thereon, that is subject to a Short-Term Payout election under Section 4.1 shall not
be paid in accordance with Section 4.1 but shall be paid in accordance with the other
applicable Article.

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	4.3	 	Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies. If the
Participant experiences an Unforeseeable Financial Emergency, the Participant may petition the
Committee to receive a partial or full payout from the Plan. The payout shall not exceed the
lesser of the Participant’s Account Balance, calculated as if such Participant were receiving
a Termination Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial
Emergency. If, subject to the sole and absolute discretion of the Committee, the petition for
a suspension and/or payout is approved, suspension shall take effect upon the date of approval
and any payout shall be made within 60 days after the date of approval. The payment of any
amount under this Section 4.3 shall not be subject to the Deduction Limitation. In addition,
a Participant’s deferral elections under this Plan shall be terminated to the extent the
Committee determines, in its sole discretion, that termination of such Participant’s deferral
elections is necessary or is required pursuant to Treas. Reg. Sec. 1.401(k)-1(d)(3) for the
Participant to obtain a hardship distribution from an Employer’s 401(k) Plan. Notwithstanding
the foregoing, the Committee shall interpret this Section 4.3 in a manner that is consistent
with Code Section 409A and other applicable tax law, including but not limited to Treasury
guidance and Regulations issued after the effective date of this Plan.
	 
	4.4	 	Withdrawal Election. A Participant (or, after a Participant’s death, his or her
Beneficiary) may elect, at any time, to withdraw all of his or her Pre-2005 Account Balance,
calculated as if there had occurred a Termination of Employment as of the day of the election,
less a withdrawal penalty equal to 10% of such amount (the net amount shall be referred to as
the “Withdrawal Amount”). This election can be made at any time, before or after Retirement,
Disability, death or Termination of Employment, and whether or not the Participant (or
Beneficiary) is in the process of being paid pursuant to an installment payment schedule. If
made before Retirement, Disability or death, a Participant’s Withdrawal Amount shall be his or
her Pre-2005 Account Balance calculated as if there had occurred a Termination of Employment
as of the day of the election. No partial withdrawals of the Withdrawal Amount shall be
allowed. The Participant (or his or her Beneficiary) shall make this election by giving the
Committee advance written notice of the election in a form determined from time to time by the
Committee. The Participant (or his or her Beneficiary) shall be paid the Withdrawal Amount
within 60 days after his or her election. The payment of this Withdrawal Amount shall not be
subject to the Deduction Limitation.

ARTICLE 5

Retirement Benefit

	5.1	 	Retirement Benefit. Subject to the Deduction Limitation, a Participant who Retires
and who has not elected at the time of deferral to receive instead of a Retirement Benefit a
Termination Benefit, shall receive, as a Retirement Benefit, his or her Account Balance.

	 	(a)	 	Payment of Retirement Benefit. A Participant, in connection with his
or her commencement of participation in the Plan, shall elect on an Election Form to
receive the Retirement Benefit in a lump sum or pursuant to an Annual Installment
Method of 2, 5, 10, 15 or 20 years. If a Participant does not make any election with
respect to the payment of the Retirement Benefit, then such benefit shall be payable in
a lump sum. The lump sum payment shall be made, or installment payments shall commence,
within the first sixty (60) days after the last day of the Plan Year which the
Participant Retires. Any payment made shall be subject to the Deduction Limitation.

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	 	(b)	 	A Participant may change the form of payment of his or her Retirement Benefit
by submitting an Election Form to the Committee in accordance with the following
criteria:

	 	(i)	 	The election to modify the form of payment of the Retirement
Benefit shall have no effect until at least twelve (12) months after the date
on which the election is made; and
	 
	 	(ii)	 	Each payment related to the Retirement Benefit shall be delayed
at least five (5) years from the originally scheduled payment date.

     For purposes of applying the requirements above, the right to receive the Retirement Benefit
in installment payments shall be treated as the entitlement to a single payment. The Committee
shall interpret all provisions relating to an election described in this Section 5.1 in a manner
that is consistent with Code Section 409A and related Treasury guidance and Regulations.

     The Election Form most recently accepted by the Committee in accordance with the criteria set
forth above shall govern the payment of the Retirement Benefit.

     Notwithstanding the other provisions of this Section 5.1, the Committee may, in its sole
discretion, permit changes in Retirement Benefit elections as permitted in the transition guidance
established by the Internal Revenue Service under Code Section 409A.

	5.2	 	Death Prior to Completion of Retirement Benefit. If a Participant dies on or before
December 31, 2008, after Retirement, but before the Retirement Benefit is paid in full, the
Participant’s unpaid Retirement Benefit payments shall be paid to the Participant’s
Beneficiary in a lump sum within sixty (60) days following January 1, 2009. If a Participant
dies on or after January 1, 2009, after Retirement, but before the Retirement Benefit is paid
in full, the Participant’s Beneficiary shall receive the Participant’s unpaid remaining
Account Balance in a lump sum within sixty (60) days following the Participant’s death.

ARTICLE 6

Pre-Retirement Survivor Benefit 

	6.1	 	Pre-Retirement Survivor Benefit. The Participant’s Beneficiary shall receive a
Pre-Retirement Survivor Benefit equal to the Participant’s Account Balance if the Participant
dies before he or she Retires, experiences a Termination of Employment or suffers a
Disability.
	 
	6.2	 	Payment of Pre-Retirement Survivor Benefit.

	 	(a)	 	The Pre-Retirement Survivor Benefit shall be received by the Participant’s
Beneficiary in a lump sum.
	 
	 	(b)	 	If the Participant dies on or before December 31, 2008, the lump sum payment
shall be made within sixty (60) days following January 1, 2009. If the Participant
dies on or after January 1, 2009, the lump sum payment shall be made within sixty (60)
days following the Participant’s death. All payments are conditioned on the Committee
receiving

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	 	 	 	satisfactory proof of the Participant’s death. Any payment made shall be subject to
the Deduction Limitation.

ARTICLE 7

Termination Benefit

	7.1	 	Termination Benefit. Subject to the Deduction Limitation, the Participant shall
receive a Termination Benefit, which shall be equal to the Participant’s Account Balance if a
Participant experiences a Termination of Employment prior to his or her Retirement, death or
Disability, or upon his or her Retirement if the Participant has elected not to have the
Retirement Benefit rules apply.
	 
	7.2	 	Payment of Termination Benefit. The Termination Benefit shall be paid in a lump sum
within the first sixty (60) days after the last day of the Plan Year in which the Participant
experiences the Termination of Employment. Any payment made shall be subject to the Deduction
Limitation.

ARTICLE 8

Six Month Delay of Benefits to Certain Employees

Notwithstanding any other provision to the contrary, if the payment of any benefit provided under
the Plan would be subject to additional taxes and interest under Code Section 409A or the Treasury
Regulations or guidance issued thereunder (“Section 409A”) because the timing of such payment is
not delayed as provided in Section 409A for a “specified employee” (within the meaning of Section
409A), then if the Participant is a “specified employee”, any such payment that the Participant
would otherwise be entitled to receive during the first six (6) months following the date of his
“separation from service” (within the meaning of Section 409A) from the Company shall be
accumulated and paid, within ten (10) days after the date that is six (6) months following the
Participant’s “separation from service” from the Company, or such earlier date upon which such
amount can be paid under Section 409A without being subject to such additional taxes and interest.

ARTICLE 9

Disability Waiver and Benefit

	9.1	 	Disability Benefit. Upon a Participant’s Disability, the Participant shall receive a
Disability benefit, which shall be equal to the Participant’s vested Account Balance,
calculated as of the close of business of the date he or she incurred the Disability.
	 
	9.2	 	Payment of Disability Benefit.

	 	(a)	 	If a Participant incurs a Disability, the Participant will be paid in a lump
sum payment.
	 
	 	(b)	 	The lump sum payment shall be made within sixty (60) days following the date of
Disability.

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ARTICLE 10

Beneficiary Designation 

	10.1	 	Beneficiary. Each Participant shall have the right, at any time, to designate his or
her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable
under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated
under this Plan may be the same as or different from the Beneficiary designation under any
other plan of an Employer in which the Participant participates.
	 
	10.2	 	Beneficiary Designation/Change/Spousal Consent. A Participant shall designate his or
her Beneficiary by completing and signing the Beneficiary Designation Form, and returning it
to the Committee or its designated agent. A Participant shall have the right to change a
Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary
Designation Form and the Committee’s rules and procedures, as in effect from time to time. If
the Participant names someone other than his or her spouse as a Beneficiary, a spousal
consent, in the form designated by the Committee, must be signed by that Participant’s spouse
and returned to the Committee. Upon the acceptance by the Committee of a new Beneficiary
Designation Form, all Beneficiary designations previously filed shall be canceled. The
Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the
Participant and accepted by the Committee prior to his or her death.
	 
	10.3	 	Acknowledgment. No designation or change in designation of a Beneficiary shall be
effective until received and acknowledged in writing by the Committee or its designated agent.
	 
	10.4	 	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as
provided in Sections 10.1, 10.2 and 10.3 above or, if all designated Beneficiaries predecease
the Participant or die prior to complete distribution of the Participant’s benefits, then the
Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If the
Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a
Beneficiary shall be payable to the executor or personal representative of the Participant’s
estate.
	 
	10.5	 	Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary
to receive payments pursuant to this Plan, the Committee shall have the right, exercisable in
its discretion, to cause the Participant’s Employer to withhold such payments until this
matter is resolved to the Committee’s satisfaction.
	 
	10.6	 	Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary
shall fully and completely discharge all Employers and the Committee from all further
obligations under this Plan with respect to the Participant, and that Participant’s Plan
Agreement shall terminate upon such full payment of benefits.

ARTICLE 11

Leave of Absence 

	11.1	 	Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer
for any reason to take a paid leave of absence from the employment of the Employer, the
Participant shall

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	 	 	continue to be considered employed by the Employer and the Annual Deferral Amount shall
continue to be withheld during such paid leave of absence in accordance with Section 3.4.
	 
	11.2	 	Unpaid Leave of Absence. If a Participant is authorized by the Participant’s
Employer for any reason to take an unpaid leave of absence from the employment of the
Employer, the Participant shall continue to be considered employed by the Employer and the
Participant shall be excused from making deferrals until the earlier of the date the leave of
absence expires or the Participant returns to a paid employment status. Upon such expiration
or return, deferrals shall resume for the remaining portion of the Plan Year in which the
expiration or return occurs, based on the deferral election, if any, made for that Plan Year.
If no election was made for that Plan Year, no deferral shall be withheld.
	 
	11.3	 	Limits on Leave of Absence. Notwithstanding the other provisions of this Article 11,
a leave of absence shall constitute a Termination of Employment to the extent it constitutes a
“separation from service” under the rules of Code Section 409A. Accordingly, if the leave of
absence exceeds six (6) months, and a return to service upon expiration of such leave is not
guaranteed by statute or contract, then (a) the Participant shall be deemed to Terminate his
or her Employment on the first date following such six (6) month period. To the extent an
authorized leave of absence is due to a medically determinable physical or mental impairment
that can be expected to result in death or to last for a continuous period of at least six (6)
months and such impairment causes the Participant to be unable to perform the duties of the
Participant’s position employment or of any substantially similar position of employment, the
six (6) month period in the prior sentence shall be twenty-nine (29) months. An authorized
leave of absence shall include sick leave, military leave, or other bona fide leave of absence
(such as temporary employment by the government).

ARTICLE 12

Termination, Amendment or Modification 

	12.1	 	Termination of Plan. Although the Company anticipates that it will continue the Plan
for an indefinite period of time, there is no guarantee that the Company will continue the
Plan or will not terminate the Plan at any time in the future. Accordingly, the Company
reserves the right to Terminate the Plan, either entirely or with respect to one or more
Employers participating in the Plan. Such action shall be taken by the Board of Directors or
its delegate. In the event of a Termination of the Plan, the Measurement Funds available to
Participants following the Termination of the Plan shall be comparable in number and type to
those Measurement Funds available to Participants in the Plan Year preceding the Plan Year in
which the Termination of the Plan is effective. Following a Termination of the Plan,
Participant Account Balances shall remain in the Plan until the Participant becomes eligible
for the benefits provided in Articles 4, 5, 6, 7 or 9 in accordance with the provisions of
those Articles. The Termination of the Plan shall not adversely affect any Participant or
Beneficiary who has become entitled to the payment of any benefits under the Plan as of the
date of termination. Notwithstanding the foregoing, to the extent permissible under Code
Section 409A and related Treasury guidance or Regulations, during the thirty (30) days
preceding or within twelve (12) months following a Change in Control that also constitutes a
“change in control event” within the meaning of Treasury regulations section 1.409A-3(i)(5),
the Company shall be permitted to (i) terminate the Plan, and (ii) distribute the vested
Account Balances to Participants in a lump sum no later than twelve (12) months after the
Change in Control, provided that all other substantially similar arrangements sponsored by
such

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	 	 	Company are also terminated and all balances in such arrangements are distributed within
twelve (12) months of the termination of such arrangements.
	 
	12.2	 	Amendment. Any Employer may, at any time, amend or modify the Plan in whole or in
part with respect to that Employer by the action of its board of directors; provided, however,
that: (i) no amendment or modification shall be effective to decrease or restrict the value of
a Participant’s Account Balance in existence at the time the amendment or modification is
made, calculated as if the Participant had experienced a Termination of Employment as of the
effective date of the amendment or modification or, if the amendment or modification occurs
after the date upon which the Participant was eligible to Retire, the Participant had Retired
as of the effective date of the amendment or modification, (ii) no amendment or modification
shall be effective upon or after a Change in Control without the prior written consent of a
majority of the Participants, and (iii) no amendment or modification of this Section 12.2 or
Section 13.2 of the Plan shall be effective. The amendment or modification of the Plan shall
not affect any Participant or Beneficiary who has become entitled to the payment of benefits
under the Plan as of the date of the amendment or modification.
	 
	12.3	 	Plan Agreement. Despite the provisions of Sections 12.1 and 12.2 above, if a
Participant’s Plan Agreement contains benefits or limitations that are not in this Plan
document, the Employer may only amend or terminate such provisions with the consent of the
Participant.
	 
	12.4	 	Effect of Payment. The full payment of the applicable benefit under Articles 4, 5,
6, 7 or 9 of the Plan shall completely discharge all obligations to a Participant and his or
her designated Beneficiaries under this Plan and the Participant’s Plan Agreement shall
terminate.

ARTICLE 13

Administration 

	13.1	 	Committee Duties. Except as otherwise provided in this Article 13, this Plan shall
be administered by a Committee which shall consist of the Board, or such committee as the
Board shall appoint. Members of the Committee may be Participants under this Plan. The
Committee shall also have the discretion and authority to (i) make, amend, interpret, and
enforce all appropriate rules and regulations for the administration of this Plan and (ii)
decide or resolve any and all questions including interpretations of this Plan, as may arise
in connection with the Plan. Any individual serving on the Committee who is a Participant
shall not vote or act on any matter relating solely to himself or herself. When making a
determination or calculation, the Committee shall be entitled to rely on information furnished
by a Participant or the Company.
	 
	13.2	 	Administration Upon Change In Control. For purposes of this Plan, the Company shall
be the “Administrator” at all times prior to the occurrence of a Change in Control. Upon and
after the occurrence of a Change in Control, the “Administrator” shall be an independent third
party selected by the Trustee and approved by the individual who, immediately prior to such
event, was the Company’s Chief Executive Officer or, if not so identified, the Company’s
highest ranking officer (the “Ex-CEO”). The Administrator shall have the discretionary power
to determine all questions arising in connection with the administration of the Plan and the
interpretation of the Plan and Trust including, but not limited to benefit entitlement
determinations; provided, however, upon and after the occurrence of a Change in Control, the
Administrator shall have no

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	 	 	power to direct the investment of Plan or Trust assets or select any investment manager or
custodial firm for the Plan or Trust. Upon and after the occurrence of a Change in Control,
the Company must: (1) pay all reasonable administrative expenses and fees of the
Administrator; (2) indemnify the Administrator against any costs, expenses and liabilities
including, without limitation, attorney’s fees and expenses arising in connection with the
performance of the Administrator hereunder, except with respect to matters resulting from
the gross negligence or willful misconduct of the Administrator or its employees or agents;
and (3) supply full and timely information to the Administrator or all matters relating to
the Plan, the Trust, the Participants and their Beneficiaries, the Account Balances of the
Participants, the date of circumstances of the Retirement, Disability, death or Termination
of Employment of the Participants, and such other pertinent information as the Administrator
may reasonably require. Upon and after a Change in Control, the Administrator may be
terminated (and a replacement appointed) by the Trustee only with the approval of the
Ex-CEO. Upon and after a Change in Control, the Administrator may not be terminated by the
Company.
	 
	13.3	 	Agents. In the administration of this Plan, the Committee may, from time to time,
employ agents and delegate to them such administrative duties as it sees fit (including acting
through a duly appointed representative) and may from time to time consult with counsel who
may be counsel to any Employer.
	 
	13.4	 	Binding Effect of Decisions. The decision or action of the Administrator with
respect to any question arising out of or in connection with the administration,
interpretation and application of the Plan and the rules and regulations promulgated hereunder
shall be final and conclusive and binding upon all persons having any interest in the Plan.
	 
	13.5	 	Indemnity of Committee. All Employers shall indemnify and hold harmless the members
of the Committee, and any Employee to whom the duties of the Committee may be delegated, and
the Administrator against any and all claims, losses, damages, expenses or liabilities arising
from any action or failure to act with respect to this Plan, except in the case of willful
misconduct by the Committee, any of its members, any such Employee or the Administrator.
	 
	13.6	 	Employer Information. To enable the Committee and/or Administrator to perform its
functions, the Company and each Employer shall supply full and timely information to the
Committee and/or Administrator, as the case may be, on all matters relating to the
compensation of its Participants, the date and circumstances of the Retirement, Disability,
death or Termination of Employment of its Participants, and such other pertinent information
as the Committee or Administrator may reasonably require.

ARTICLE 14

Coordination with Other Benefits 

The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in
addition to any other benefits available to such Participant under any other plan or program for
employees of the Participant’s Employer. The Plan shall supplement and shall not supersede, modify
or amend any other such plan or program except as may otherwise be expressly provided.

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ARTICLE 15

Claims Procedures 

	15.1	 	Presentation of Claim. Any Participant or Beneficiary of a deceased Participant
(such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the
Committee a written claim for a determination with respect to the amounts distributable to
such Claimant from the Plan. If such a claim relates to the contents of a notice received by
the Claimant, the claim must be made within sixty (60) days after such notice was received by
the Claimant. All other claims must be made within one hundred eighty (180) days of the date
on which the event that caused the claim to arise occurred. The claim must state with
particularity the determination desired by the Claimant.
	 
	15.2	 	Notification of Decision. The Committee shall consider a Claimant’s claim within a
reasonable time, and shall notify the Claimant in writing:

	 	(a)	 	that the Claimant’s requested determination has been made, and that the claim
has been allowed in full; or
	 
	 	(b)	 	that the Committee has reached a conclusion contrary, in whole or in part, to
the Claimant’s requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant:

	 	(i)	 	the specific reason(s) for the denial of the claim, or any part
of it;
	 
	 	(ii)	 	specific reference(s) to pertinent provisions of the Plan upon
which such denial was based;
	 
	 	(iii)	 	a description of any additional material or information
necessary for the Claimant to perfect the claim, and an explanation of why such
material or information is necessary;
	 
	 	(iv)	 	an explanation of the claim review procedure set forth in
Section 15.3 below; and
	 
	 	(v)	 	a statement of the Claimant’s right to bring a civil action
under ERISA Section 502(a) following an adverse benefit determination on
review.

	15.3	 	Review of a Denied Claim. Within sixty (60) days after receiving a notice from the
Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s
duly authorized representative) may file with the Committee a written request for a review of
the denial of the claim. Thereafter, but not later than thirty (30) days after the review
procedure began, the Claimant (or the Claimant’s duly authorized representative):

	 	(a)	 	may review pertinent documents;
	 
	 	(b)	 	may submit written comments or other documents; and/or

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	 	(c)	 	may request a hearing, which the Committee, in its sole and absolute
discretion, may grant.

	15.4	 	Decision on Review. The Committee shall render its decision on review promptly, and
no later than sixty (60) days after the Committee receives the Claimant’s written request for
a review of the denial of the claim. If the Committee determines that special circumstances
require an extension of time for processing the claim, written notice of the extension shall
be furnished to the Claimant prior to the termination of the initial sixty (60) day period.
In no event shall such extension exceed a period of sixty (60) days from the end of the
initial period. The extension notice shall indicate the special circumstances requiring an
extension of time and the date by which the Committee expects to render the benefit
determination. In rendering its decision, the Committee shall take into account all comments,
documents, records and other information submitted by the Claimant relating to the claim,
without regard to whether such information was submitted or considered in the initial benefit
determination. The decision must be written in a manner calculated to be understood by the
Claimant, and it must contain:

	 	(a)	 	specific reasons for the decision;
	 
	 	(b)	 	specific reference(s) to the pertinent Plan provisions upon which the decision
was based;
	 
	 	(c)	 	a statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to and copies of, all documents, records and other
information relevant (as defined in applicable ERISA regulations) to the Claimant’s
claim for benefits; and
	 
	 	(d)	 	a statement of the Claimant’s right to bring a civil action under ERISA Section
502(a).

	15.5	 	Legal Action. A Claimant’s compliance with the foregoing provisions of this Article
15 is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect
to any claim for benefits under this Plan.

ARTICLE 16

Trust

	16.1	 	Establishment of the Trust. The Company shall establish the Trust, and each Employer
shall at least annually transfer over to the Trust such assets as the Employer determines, in
its sole and absolute discretion, are necessary to provide, on a present value basis, for its
respective future liabilities created with respect to the Annual Deferral Amounts, Annual
Company Contribution Amounts and Company Matching Amounts for such Employer’s Participants for
all periods prior to the transfer, as well as any debits and credits to the Participants’
Account Balances for all periods prior to the transfer, taking into consideration the value of
the assets in the trust at the time of the transfer.
	 
	16.2	 	Interrelationship of the Plan and the Trust. The provisions of the Plan and the Plan
Agreement shall govern the rights of a Participant to receive distributions pursuant to the
Plan. The provisions of the Trust shall govern the rights of the Employers, Participants and
the creditors of the Employers to the assets transferred to the Trust. Each Employer shall at
all times remain liable to carry out its obligations under the Plan.

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	16.3	 	Distributions From the Trust. Each Employer’s obligations under the Plan may be
satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such
distribution shall reduce the Employer’s obligations under this Plan.

ARTICLE 17

Miscellaneous

	17.1	 	Status of Plan. The Plan is intended to be a plan that is not qualified within the
meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer
primarily for the purpose of providing deferred compensation for a select group of management
or highly compensated employee” within the meaning of ERISA Sections 201(2), 301(a)(3) and
401(a)(1). The Plan shall be administered and interpreted to the extent possible in a manner
consistent with the intent described in the preceding sentence, and (ii) in accordance with
Code Section 409A and related Treasury guidance and Regulations. The foregoing
notwithstanding, the Company makes no representation that the benefits provided under the Plan
will comply with Code Section 409A and makes no undertaking to prevent Code Section 409A from
applying to the benefits provided under the Plan or to mitigate its effects on any deferrals
or payments made under the Plan.
	 
	17.2	 	Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors
and assigns shall have no legal or equitable rights, interests or claims in any property or
assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of
an Employer’s assets shall be, and remain, the general, unpledged unrestricted assets of the
Employer. An Employer’s obligation under the Plan shall be merely that of an unfunded and
unsecured promise to pay money in the future.
	 
	17.3	 	Employer’s Liability. An Employer’s liability for the payment of benefits shall be
defined only by the Plan and the Plan Agreement, as entered into between the Employer and a
Participant. An Employer shall have no obligation to a Participant under the Plan except as
expressly provided in the Plan and his or her Plan Agreement.
	 
	17.4	 	Nonassignability. Neither a Participant nor any other person shall have any right to
commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are expressly declared to
be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual
payment, be subject to seizure, attachment, garnishment or sequestration for the payment of
any debts, judgments, alimony or separate maintenance owed by a Participant or any other
person, be transferable by operation of law in the event of a Participant’s or any other
person’s bankruptcy or insolvency or be transferable to a spouse as a result of a property
settlement or otherwise.
	 
	17.5	 	Not a Contract of Employment. The terms and conditions of this Plan shall not be
deemed to constitute a contract of employment between any Employer and the Participant. Such
employment is hereby acknowledged to be an “at will” employment relationship that can be
terminated at any time for any reason, or no reason, with or without cause, and with or
without notice, unless expressly provided in a written employment agreement. Nothing in this
Plan shall be deemed to give a Participant the right to be retained in the service of any
Employer, either as

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	 	 	an Employee or a Director, or to interfere with the right of any Employer to discipline or
discharge the Participant at any time.
	 
	17.6	 	Furnishing Information. A Participant or his or her Beneficiary will cooperate with
the Committee by furnishing any and all information requested by the Committee and take such
other actions as may be requested in order to facilitate the administration of the Plan and
the payments of benefits hereunder, including but not limited to taking such physical
examinations as the Committee may deem necessary.
	 
	17.7	 	Terms. Whenever any words are used herein in the masculine, they shall be construed
as though they were in the feminine in all cases where they would so apply; and whenever any
words are used herein in the singular or in the plural, they shall be construed as though they
were used in the plural or the singular, as the case may be, in all cases where they would so
apply.
	 
	17.8	 	Captions. The captions of the articles, sections and paragraphs of this Plan are for
convenience only and shall not control or affect the meaning or construction of any of its
provisions.
	 
	17.9	 	Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and
interpreted according to the internal laws of the State of California without regard to its
conflicts of laws principles.
	 
	17.10	 	Notice. Any notice or filing required or permitted to be given to the Committee
under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or
certified mail, to the address below:

Senior
Vice President of Human Resources

 

Mindspeed Technologies, Inc.

 

4000 MacArthur
Boulevard, East Tower

 

Newport Beach, California 92660

 

	 	 	Such notice shall be deemed given as of the date of delivery or, if delivery is made by
mail, as of the date shown on the postmark on the receipt for registration or certification.
	 
	 	 	Any notice or filing required or permitted to be given to a Participant under this Plan
shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known
address of the Participant.
	 
	17.11	 	Successors. The provisions of this Plan shall bind and inure to the benefit of the
Participant’s Employer and its successors and assigns and the Participant and the
Participant’s designated Beneficiaries.
	 
	17.12	 	Spouse’s Interest. The interest in the benefits hereunder of a spouse of a
Participant who has predeceased the Participant shall automatically pass to the Participant
and shall not be

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	 	 	transferable by such spouse in any manner, including but not limited to such spouse’s will,
nor shall such interest pass under the laws of intestate succession.
	 
	17.13	 	Validity. In case any provision of this Plan shall be illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal or invalid provision had never been
inserted herein.
	 
	17.14	 	Incompetent. If the Committee determines in its discretion that a benefit under
this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of
handling the disposition of that person’s property, the Committee may direct payment of such
benefit to the guardian, legal representative or person having the care and custody of such
minor, incompetent or incapable person. The Committee may require proof of minority,
incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of
the benefit. Any payment of a benefit shall be a payment for the account of the Participant
and the Participant’s Beneficiary, as the case may be, and shall be a complete discharge of
any liability under the Plan for such payment amount.
	 
	17.15	 	Court Order. The Committee is authorized to make any payments directed by court
order in any action in which the Plan or the Committee has been named as a party.
Notwithstanding the foregoing, the Committee shall interpret this provision in a manner that
is consistent with Code Section 409A and other applicable tax law. In addition, if a court
determines that a spouse or former spouse of a Participant has an interest in the
Participant’s benefits under the Plan in connection with a property settlement or otherwise,
the Committee, in its sole and absolute discretion, shall have the right, notwithstanding any
election made by a Participant, to immediately distribute the spouse’s or former spouse’s
interest in the Participant’s benefits under the Plan to that spouse or former spouse, as
provided in Treasury Regulations Section 1.409A-3(c)(4)(ii).
	 
	17.16	 	Distribution in the Event of Income Inclusion Under Code Section 409A. If any
portion of a Participant’s Account Balance under this Plan is required to be included in
income by the Participant prior to receipt due to a failure of this Plan to meet the
requirement of Code Section 409A and related Treasury guidance or Regulations, the Participant
may petition the Committee for a distribution of that portion of his or her Account Balance
that is required to be included in his or her income. Upon the grant of such a petition,
which grant shall not be unreasonably withheld, the Participant’s Employer shall distribute to
the Participant immediately-available funds in an amount equal to the portion of his or her
Account Balance required to be included in income as a result of the failure of the Plan to
meet the requirements of Code Section 409A and related Treasury guidance or Regulations, which
amount shall not exceed the Participant’s unpaid vested Account Balance under the Plan. If
the petition is granted, such distribution shall be made within 90 days of the date when the
Participant’s petition is granted. Such a distribution shall affect and reduce the
Participant’s benefits to be paid under this Plan. Notwithstanding the preceding sentences of
this section, if the Committee determines that Code Section 409A requires that distribution of
Account Balances be automatic in order to comply with Code Section 409A, the portion of a
Participant’s Account Balance that fails to comply with the requirements of Code Section 409A
shall be automatically distributed.
	 
	17.17	 	Insurance. The Employers, on their own behalf or on behalf of the trustee of the
Trust, and, in their sole and absolute discretion, may apply for and procure insurance on the
life of the

27

 

Mindspeed Technologies, Inc.

Deferred Compensation Plan

Master Plan Document

	 	 	Participant, in such amounts and in such forms as the Trust may choose. The Employers or the
trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any
such insurance. The Participant shall have no interest whatsoever in any such policy or
policies, and at the request of the Employers shall submit to medical examinations and
supply such information and execute such documents as may be required by the insurance
company or companies to whom the Employers have applied for insurance.
	 
	17.18	 	Legal Fees To Enforce Rights After Change in Control. The Company and each Employer
is aware that upon the occurrence of a Change in Control, the Board or the board of directors
of a Participant’s Employer (which might then be composed of new members) or a shareholder of
the Company or the Participant’s Employer, or of any successor corporation might then cause or
attempt to cause the Company, the Participant’s Employer or such successor to refuse to comply
with its obligations under the Plan and might cause or attempt to cause the Company or the
Participant’s Employer to institute, or may institute, litigation seeking to deny Participants
the benefits intended under the Plan. In these circumstances, the purpose of the Plan could be
frustrated. Accordingly, if, following a Change in Control, it should appear to any
Participant that the Company, the Participant’s Employer or any successor corporation has
failed to comply with any of its obligations under the Plan or any agreement thereunder or, if
the Company, such Employer or any other person takes any action to declare the Plan void or
unenforceable or institutes any litigation or other legal action designed to deny, diminish or
to recover from any Participant the benefits intended to be provided, then the Company and the
Participant’s Employer irrevocably authorize such Participant to retain counsel of his or her
choice at the expense of the Company and the Participant’s Employer (who shall be jointly and
severally liable) to represent such Participant in connection with the initiation or defense
of any litigation or other legal action, whether by or against the Company, the Participant’s
Employer or any director, officer, shareholder or other person affiliated with the Company,
the Participant’s Employer or any successor thereto in any jurisdiction.
	 
	 	 	IN WITNESS WHEREOF, the Company has signed this Plan document as of 2008.

	 	 	 	 	 	 	 
	 	 	“Company”	 	 
	 
	 	 	 	 	 	 
	 	 	Mindspeed Technologies, Inc., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	 /s/ Thomas O. Morton	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 Senior Vice President, Human
Resources	 	 
	 

	 	 	 	 
	 	 

28exv10w32

Exhibit 10.32

CONFIDENTIAL SEVERANCE AND GENERAL RELEASE AGREEMENT

     THIS CONFIDENTIAL SEVERANCE AND GENERAL RELEASE AGREEMENT (this “Agreement”) is entered into
as of the last date set forth on the signature page hereto, and is made effective as of October 10,
2008 (the “Effective Date”), by and between Thomas A. Stites (“Employee”) and Mindspeed
Technologies, Inc., a Delaware corporation (“Mindspeed”).

RECITALS

WHEREAS, Employee is currently employed by Mindspeed as Senior Vice President, Communications;

WHEREAS, Employee and Mindspeed wish to arrange for Employee’s separation from employment with
Mindspeed on mutually agreeable terms and conditions as set forth in this Agreement;

ACCORDINGLY, the parties agree as follows:

     1. Termination. Employee will cease active full-time employment with Mindspeed on the
Effective Date. Mindspeed and Employee agree to affect a thoughtful and professional business
transition. Employee agrees to provide transitional assistance to Mindspeed beginning October 11,
2008 by working through November 14, 2008 on a half-time basis at half salary ($2,403.846/week) to
prepare for FY08Q4 earnings release and follow up meetings. Employee will cease active employment
entirely on the November 14, 2008.

     2. Resignation. As of the Effective Date, Employee hereby resigns his position as an
officer of Mindspeed and as a director or officer in each of Mindspeed’s subsidiaries for which he
holds an office or offices.

     3. Settlement Sum. In consideration of Employee’s representations and releases in
this Agreement, Mindspeed will provide Employee with salary continuation pay at Employee’s current
salary level of $4,807.69 per week (less applicable withholdings) for twelve (12) months beginning
on November 15, 2008 and continuing through November 13, 2009 (the “Salary Continuation Period”).
The salary continuation payments will be made in accordance with Mindspeed’s bi-weekly payroll
schedule. Employee will not accrue additional vacation hours after November 14, 2008. During the
Salary Continuation Period, Mindspeed will continue to (a) pay the premiums for Employee’s coverage
under Mindspeed’s group medical, dental, and vision insurance plans, which coverage may be
provided under COBRA at Mindspeed’s election subject to Employee’s payment of any employee
contributions that would have applied if Employee had remained an officer of the Company; and (b)
pay the costs of Employee’s annual executive physical examination, health club membership, two (2)
airline

1

 

clubs, and financial counseling benefits, to the same extent as if Employee had remained an
officer of Mindspeed during such period. In addition, Company will reimburse (not to exceed a
total of $1,000) membership fees in three (3) professional organizations (PRSA, IABC, NIRI).
Participation in Mindspeed’s long term disability insurance coverage, Mindspeed’s Group Personal
Excess Liability Coverage, and participation in Mindspeed’s 401(k) plan end on November 14, 2008.
Employee agrees to be available to provide limited consulting services to assist with FY09Q1
earnings release and call. Following the conclusion of the Salary Continuation Period, Employee
will be placed on unpaid leave through February 12, 2010 (the “Unpaid LOA Period”), during which
time he will not accrue further pay, vacation or other compensation. During the Unpaid LOA Period,
Mindspeed will continue to (a) pay the premiums for Employee’s continued coverage under Mindspeed’s
group medical, dental, and vision insurance plans, which coverage may be provided under COBRA at
Mindspeed’s election subject to Employee’s payment of any employee contributions that would have
applied if Employee had remained an officer of the Company; and (b) pay the costs of Employee’s
annual executive physical, health club membership, two (2) airline clubs, and financial counseling
benefits to the same extent as if Employee had remained an officer of Mindspeed during such period.
Additionally, Mindspeed will provide Employee with outplacement assistance for a period of six (6)
months following November 14, 2008 at Mindspeed’s expense through Right Management Consultants, or
a similar firm, at the selected firm’s office location. The foregoing payments and benefits will
be referred to collectively as the “Settlement Sum,” and the parties hereto agree that the
Settlement Sum provides Employee with full recompense for any and all claims for lost or unpaid
wages, benefits, damages, interest and any other claim related to Employee’s employment or to the
separation of such employment.

     4. Stock Plans. Upon the termination of Employee’s employment from Mindspeed at the
close of business on the last day of the Unpaid LOA Period (the “Termination Date”), all stock
options for Mindspeed stock that have been granted to Employee under any of Mindspeed’s or the
other company’s stock plans and which are not vested as of the Termination Date, shall immediately
expire and shall not be exercisable under any circumstances. Any such options that are vested as
of the Termination Date shall be exercisable for a period of three (3) months following the
Termination Date and shall expire and shall not be exercisable at the end of such period if they
are not exercised within that period. All unearned restricted stock as of the Termination Date,
together with any dividends thereon, shall be forfeited, and Employee shall have no further rights
of any kind or nature with respect thereto. Employee’s Mindspeed stock option and restricted stock
awards outstanding as of the Effective Date are detailed in the attached Schedule A.

     5. No Section 16 Reporting. Employee understands and agrees that, as of November 14,
2008, Employee shall no longer be a Section 16 officer of Mindspeed and all such reporting by
Mindspeed on Employee’s behalf shall cease.

     6. Mindspeed Proprietary Information. Employee represents, understands and agrees
that he is subject to that certain Employment Agreement, dated January 1, 1999,

2

 

regarding Mindspeed’s proprietary information, which he executed in connection with his
employment with Mindspeed, and that the provisions which survive his employment are enforceable and
remain in full force and effect. Employee represents, as a material inducement to Mindspeed to
enter into this Agreement, that he has not and will not disclose, use or misappropriate any
confidential, proprietary or trade secret information of Mindspeed to the press, customers,
analysts, investors or competitors. This representation includes, but is not limited to, product
roadmaps, customer lists, design wins and employee lists. Mindspeed acknowledges that Employee’s
employment with competitors, in and of itself, will not constitute disclosure. Mindspeed further
acknowledges that the act of meeting with a Mindspeed customer, in and of itself, will not
constitute disclosure, use or misappropriation of Mindspeed proprietary information.

     7. Termination of Agreement. That certain change of control Employment Agreement,
dated as of June 10, 2008 by and between Mindspeed and Employee, shall be terminated, and no longer
in effect as of the Effective Date.

     8. Non-Solicit. During the Salary Continuation Period and Unpaid LOA and for a period
of twelve (12) months after Employee’s Termination Date, Employee shall not directly or indirectly
solicit or assist any other company or person in soliciting any Mindspeed employee to leave
Mindspeed and join another company.

     9. No Further Claims. Employee agrees that he is not entitled to receive, and will
not claim, any additional right, benefit, payment or compensation, including but not limited to,
any claim for wages, benefits, damages, interest, attorneys fees and costs, other than what is
expressly set forth in Section 3, and hereby expressly waives any right to additional rights,
benefits, payments or compensation. Employee further acknowledges that Mindspeed makes this
Agreement without any admission of liability, and agrees, to the extent permissible by law, that he
will not defame, disparage or make false or deceptive allegations against Mindspeed, whether to the
press, employees, customers, investors or otherwise. In the event of Employee’s breach of this
Section 9, Mindspeed may immediately terminate Employee’s employment for cause, and Employee shall
forfeit any unpaid remainder of the Settlement Sum. For their part, the specific Mindspeed
executives aware of this Agreement, Raouf Y. Halim, Thomas O. Morton and Bret W. Johnsen, agree not
to defame, disparage or make false or deceptive allegations against Employee, whether to the press,
employees, customers, investors or otherwise, or furthermore to knowingly allow other Mindspeed
employees to defame or disparage Employee. Employee should direct all prospective employment
inquiries or requests for employment references to either Mr. Halim or Mr. Morton.

     10. Release. In exchange for the Settlement Sum, Employee agrees to, and by signing
this Agreement does, waive and release all claims (known and unknown) which he might otherwise have
had against Mindspeed and each of its past and present employees, officers, directors, agents,
representatives, attorneys, insurers, related entities, assigns, successors, and predecessors of
Mindspeed, and all persons acting by, through, under or in concert with any of

3

 

them (collectively, the “Releasees”), from any and all charges, complaints, claims,
liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action,
suits, rights, demands, costs, losses, debts and expenses (including back wages, and attorneys’
fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or
unsuspected, including, but not limited to, rights arising out of alleged violations of any
contract, express or implied (including but not limited to any contract of employment, partnership,
independent contractor, fiduciary, special or confidential relationship); any covenant of good
faith and fair dealing (express or implied); any tort, including fraud and deceit, negligent
misrepresentation, promise without intent to perform, conversion, breach of fiduciary duty,
defamation, libel, slander, invasion of privacy, negligence, intentional or negligent infliction of
emotional distress, malicious prosecution, abuse of process, intentional or negligent interference
with prospective economic advantage and conspiracy; any “wrongful discharge” and “constructive
discharge” claims; any claims relating to any breach of public policy; any violations or breaches
of corporate by-laws; any legal restrictions on Mindspeed’s right to terminate employees or take
other employment actions; or any federal, state, local, municipal or other governmental statute,
regulation or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964,
the California Fair Employment and Housing Act, the Americans with Disabilities Act, and the Age
Discrimination in Employment Act (collectively “Claim” or “Claims”) arising prior to the execution
of this Agreement.

     11. Waiver. Employee expressly waives and relinquishes all rights and benefits
afforded by Section 1542 of the Civil Code of the State of California, and does so understanding
and acknowledging the significance of such specific waiver of Section 1542. Section 1542 of the
Civil Code of the State of California states as follows:

“A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of
executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.”

Thus, notwithstanding the provisions of Section 1542, and for the purpose of implementing a full
and complete release and discharge of all Releasees, Employee expressly acknowledges that this
Agreement is intended to include in its effect, without limitation, all Claims which Employee does
not know or suspect to exist in his favor against the Releasees, or any of them, at the time of
execution hereof, and that this Agreement contemplates the extinguishment of any such Claim or
Claims. If Employee hereafter institutes any legal action against the Releasees, and each of them
(except to enforce the specific provisions of this Agreement or for any future cause of action
unrelated to Employee’s employment with Mindspeed or its predecessor companies), Mindspeed shall be
entitled to payment from Employee of all costs, expenses and attorney’s fees incurred as a result
of such legal action.

     12. No Other Promises. This Agreement contains all of the terms, promises,
representations and understandings made between the parties. Employee agrees that no

4

 

promises, representations or inducements have been made to him which caused him to sign this
Agreement other than those which are expressly set forth above herein.

     13. Confidentiality. Employee represents and agrees that, with the exception of any
civil judicial action where disclosure of this Agreement is ordered by the court, or where
disclosure is compelled by law or government audit, he has and will keep the nature, terms and
existence of this Agreement and the Settlement Sum strictly confidential, and that he has not and
will not disclose, discuss or reveal any information concerning the nature, terms and existence of
this Agreement and the Settlement Sum to any other person, entity or organization, except that
Employee may disclose this information to his legal counsel, spouse and professional accountant.
Employee is to advise Mindspeed of any request or demand for disclosure in any civil judicial
action immediately upon learning of it so Mindspeed will be afforded a full opportunity to
intervene, to object and to take any other action necessary to protect the confidentiality of this
Agreement and the Settlement Sum. Employee acknowledges and agrees that Mindspeed is permitted to
disclose this Agreement and the Settlement Sum in order to comply with any Securities and Exchange
Commission or stock exchange disclosure requirements.

     14. Representations. Employee acknowledges that he has been advised to carefully
consider all of the provisions in this Agreement before signing it. Employee represents,
acknowledges and agrees that he has fully discussed all aspects of this Agreement with his
attorneys to the full extent he so desired; that Employee has carefully read and fully understands
all of the provisions of this Agreement; that Employee has taken as much time as he needs for full
consideration of this Agreement; that Employee fully understands that this Agreement releases all
of his claims, both known and unknown, against the Releasees; that Employee is voluntarily entering
into this Agreement; and that Employee has the capacity to enter into this Agreement.

     15. Age Discrimination. Employee understands that he has a period of forty five (45)
days to review and consider his release of his claims of age discrimination under the Age
Discrimination in Employment Act (“ADEA”) before signing this Agreement. Employee further
understands that he may use as much or as little of this forty five (45) day period as he wishes to
prior to signing this Agreement. Employee also understands that after he signs this Agreement he
is given seven (7) days within which to revoke the portion of this Agreement releasing his claims
under the ADEA. Such revocation, to be valid, must be in writing and received by Mindspeed within
the seven (7) day revocation period.

     16. No Other Representations. Employee represents and acknowledges that in executing
this Agreement, he does not rely and has not relied upon any representation or statement not set
forth in this Agreement made by Mindspeed, the Releasees, or by any of their agents,
representatives or attorneys with regard to the subject matter, basis or effect of this Agreement.

5

 

     17. No Admission of Liability. This Agreement shall not in any way be
construed as an admission by Mindspeed that it has acted wrongfully with respect to Employee
or any other person, or that Employee or any other person has any rights whatsoever against
Mindspeed. Mindspeed specifically disclaims any liability to or wrongful acts against Employee or
any other person, on the part of itself, its agents or its employees, past or present.

     18. Compliance with Laws. Employee represents that he has fulfilled his ethical,
legal and professional responsibilities to Mindspeed, that he has not at any time known or been
complicit in any financial reporting certification or board action taken in anything other than the
best interest of Mindspeed stockholders, and that he is not aware of any liabilities, obligations,
noncompliance with legal requirements (including, but not limited to, noncompliance with The
Sarbanes-Oxley Act or any applicable securities regulations) or exposure of any kind on the part of
Mindspeed that he has not, as of the date of this Agreement, brought to the attention of Mindspeed.

     19. Severability. The provisions of this Agreement are severable, and if any part of
it is found to be unenforceable, the other sections shall remain fully valid and enforceable. This
Agreement shall survive the termination of any arrangements contained herein.

     20. Governing Law. This Agreement is made and entered into in the State of
California, and shall in all respects be interpreted, enforced and governed by and under the laws
of the State of California.

     21. Entire Agreement. This Agreement sets forth the entire agreement between the
parties hereto, and fully supersedes any and all prior agreements or understandings between the
parties hereto pertaining to the subject matter of this Agreement. This Agreement may not be
modified, waived, rescinded or amended in any manner, except by a writing executed by all parties
to this Agreement which clearly and specifically modifies, waives, rescinds or amends this
Agreement. This Agreement is intended to comply with the provisions of Internal Revenue Code
Section 409A (“Code Section 409A”) and, accordingly, the parties agree to amend this Agreement in
good faith to the extent necessary to make this Agreement comply with Code Section 409A; provided,
however, that Mindspeed makes no representation that the amounts payable under this Agreement will
comply with Code Section 409A and makes no undertaking to prevent Code Section 409A from applying
to the amounts payable under this Agreement or to mitigate its effects on any payments made under
this Agreement.

     22. Successors and Assigns. This Agreement shall be binding upon Employee and upon
his respective heirs, administrators, representatives, executors, successors and assigns, and shall
inure to the benefit of Mindspeed and the other Releasees and their related entities. This
Agreement shall be binding on any successor entity to Mindspeed.

     23. No Assignment of Claims. Employee represents and warrants that he has not
heretofore assigned or otherwise transferred or subrogated, or purported to assign, transfer or
subrogate, to any person or entity, any Claim or portion thereof, or interest therein he may have

6

 

against the Releasees, and he agrees to indemnify, defend and hold the Releasees harmless from
and against any and all liability, loss, demands, claims, damages, costs, expenses or attorneys’
fees incurred by the Releasees as the result of any person or entity asserting any such right,
assignment, transfer or subrogation.

     24. Execution in Counterparts. This Agreement may be executed in one or more
counterparts, any one of which shall be deemed to be the original even if the others are not
produced.

     25. Joint Preparation of this Agreement. Each party has had the opportunity to
revise, comment upon and redraft this Agreement. Accordingly, it is agreed that no rule of
construction shall apply against any party or in favor of any party. This Agreement shall be
construed as if the parties jointly prepared this Agreement, and any uncertainty or ambiguity shall
not be interpreted against any one party and in favor of the other.

     26. Further Actions. The parties hereto, without further consideration, shall execute
and deliver such other documents and take such other actions as may be necessary to achieve the
objectives of this Agreement. Employee further agrees to cooperate fully in the transition of
matters under his responsibility, and to make himself reasonably available, as necessary, to answer
questions or assist in such transitions.

     PLEASE READ CAREFULLY. THIS CONFIDENTIAL SEVERANCE AND GENERAL RELEASE AGREEMENT INCLUDES A
RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

	 	 	 	 	 
	Dated: October 27, 2008

	 	By: /s/
	 	Thomas Stites
	 

	 	 	 	Thomas Stites
	 
	 	 	 	 
	 	 	MINDSPEED TECHNOLOGIES, INC.
	 
	 	 	 	 
	Dated: November 3, 2008

	 	By: /s/
	 	Raouf Y. Halim
	 

	 	 	 	Raouf Y. Halim
	 

	 	 	 	Chief Executive Officer

7

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