Document:

EX-10.2

 Exhibit 10.2 
 FIRST AMENDMENT 
 TO 

LOAN AND SECURITY AGREEMENT 
 THIS FIRST AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this 11th day of June, 2012 by and between Silicon Valley Bank (“Bank”) and MINDSPEED TECHNOLOGIES, INC., a
Delaware corporation (“Borrower”) whose address is 4000 Macarthur Blvd., East Tower, Newport Beach, CA 92660. 

RECITALS 
 A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of February 6, 2012 (as the same may from time to time be amended, modified, supplemented or restated,
the “Loan Agreement”). 
 B. Bank has extended credit to Borrower for the purposes permitted in the Loan
Agreement. 
 C. Borrower has requested that Bank amend the Loan Agreement to revise the financial covenants and make
certain other changes as more fully set forth herein. 
 D. Bank has agreed to so amend certain provisions of the Loan
Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT 
 NOW,
THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the
Loan Agreement. 
 2. Amendments to Loan Agreement. 

2.1 Section 6.7 (Financial Covenants). Section 6.7 of the Agreement is amended in its entirety and replaced with the
following: 
 “6.7 Financial Covenants. Maintain as of the last day of each fiscal quarter, on a consolidated basis
with respect to Borrower and its Subsidiaries: 
 (a) Liquidity Ratio. A Liquidity Ratio of at least 1.25 to 1.0.

 (b) Adjusted EBITDA. Adjusted EBITDA of not less than the following amounts for the applicable measuring period:

  

					
	 Measuring Period
	  	Adjusted EBITDA	 
		
	Borrower’s third fiscal quarter of 2012	  	($	3,000,000	) 
	Borrower’s fourth fiscal quarter of 2012	  	($	500,000	) 
	Borrower’s first fiscal quarter of 2013	  	$	1,500,000	  
	Borrower’s second fiscal quarter of 2013	  	$	1,500,000	  
	Borrower’s third fiscal quarter of 2013	  	$	4,000,000	  
	Borrower’s fourth fiscal quarter of 2013	  	$	6,000,000	  

 (c) Fixed Charge Coverage Ratio. A Fixed Charge Coverage Ratio of not less than
(i) 1.10 to 1.00 for Borrower’s first, second and third fiscal quarters of 2014 and (ii) 1.25 to 1.00 for each of Borrower’s fiscal quarters thereafter. 
 (d) Minimum Cash and Cash Equivalents. A balance of unrestricted cash and Cash Equivalents at Bank plus cash and Cash Equivalents subject to a Control Agreement of not less than (i) Fifteen
Million Dollars ($15,000,000) plus (ii) beginning on March 31, 2013, the outstanding principal amount of the Existing Convertible Notes, if any 
 (e) Convertible Debt Financing. Borrower shall have received at least Thirty Million Dollars ($30,000,000) in cash proceeds (less any fees and expenses) from the issuance of the New Convertible
Notes on or prior to June 30, 2012. 
 Notwithstanding the foregoing, if, as of the last day of any fiscal quarter,
Borrower maintains (I) a Liquidity Ratio of at least 1.50 to 1.00 and (II) a balance of unrestricted cash and Cash Equivalents at Bank plus cash and Cash Equivalents subject to a Control Agreement greater than (i) Twenty Five Million
Dollars ($25,000,000) plus (ii) beginning on March 31, 2013, the outstanding principal amount of the Existing Convertible Notes, if any, the covenants set forth in Sections 6.7(b) and 6.7(c) above shall not be applicable for such fiscal
quarter.” 
 2.2 Section 7.11 (Redemption, at the Option of Borrower, of New Convertible Notes). New
Section 7.11 is hereby added as follows: 
 “7.11 Redemption, at the Option of Borrower, of New Convertible
Notes. Redeem, at the option of Borrower, the New Convertible Notes unless (i) Borrower can demonstrate pro-forma compliance with the financial covenants set forth in Section 6.7(a) and 6.7(d) hereof both before and after giving effect
to such redemption assuming full payment of the redemption price in cash or (ii) Borrower has demonstrated two (2) consecutive quarters of a Fixed Charge Coverage Ratio greater than 1.10 to 1.00 and has at least Twenty Five Million Dollars
($25,000,000) of unrestricted cash at the time of such redemption.” 
 2.3 Section 13 (Definitions). Subsection
(d) of the defined term “Permitted Indebtedness” set forth in Section 13.1 is amended in its entirety and replaced with the following: 

“(d) unsecured Indebtedness pursuant to the Existing Convertible Notes and the New Convertible Notes in an aggregate
principal amount not to exceed Fifty Million Dollars ($50,000,000);” 
 2.4 Section 13 (Definitions). The
following terms and their respective definitions set forth in Section 13.1 are amended in their entirety and replaced with the following: 
 “Fixed Charge Coverage Ratio” is a ratio of (i) Adjusted EBITDA minus the sum of cash taxes, intellectual property expenditures, and capitalized expenditures to (ii) the sum of
Interest Expense and scheduled principal payments on all Indebtedness, all calculated on a trailing three (3) month basis. 
 “Liquidity” is the sum of cash and Cash Equivalents plus Accounts receivable, minus, beginning on March 31, 2013, the outstanding principal amount of the Existing Convertible Notes,
if any. 
 2.5 Section 13 (Definitions). The following terms and their respective definitions are hereby added to
Section 13.1 of the Agreement as follows: 
 “Existing Convertible Notes” are those
certain unsecured 6.50% convertible senior notes due August 2013 issued by Borrower pursuant to an 

  
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indenture, dated as of August 1, 2008, between Borrower and Wells Fargo Bank, N.A., as trustee in the aggregate principal amount of Fifteen Million Dollars ($15,000,0000). 

“First Amendment Effective Date” is June 11, 2012. 

“New Convertible Notes” are unsecured convertible senior notes issued by Borrower in an aggregate
principal amount of at least Thirty Million Dollars ($30,000,000) that either (A) (i) have no financial covenants, (ii) have a maturity date not earlier than February 7, 2017, (iii) have no event of default that is triggered
upon the occurrence of an Event of Default (other than an Event of Default that is triggered upon a payment default under the Loan Documents or the acceleration of the obligations under the Loan Agreement), (iv) do not require regularly
scheduled principal payments prior to the final maturity date (for the avoidance of doubt, neither of the following shall be deemed “regularly scheduled payments” (i) voluntary redemptions of the unsecured convertible senior notes and
(ii) mandatory repurchases of the unsecured convertible senior notes upon a change of control or other similar event) and (v) have an interest rate not greater than six and three quarters percentage points (6.75%) or (B) are
subject to other terms and conditions acceptable to Bank in its reasonable business discretion. 
 2.6 Section 13
(Definitions). The following term and its definition is hereby deleted from Section 13.1 of the Agreement: 
 “Convertible Notes” 
 2.7 Exhibit F to the Agreement is
hereby replaced with Exhibit F attached hereto. 
 3. Limitation of Amendments. 

3.1 The amendments set forth in Section 2, above, is effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection
with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and
effect. 
 4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and
warrants to Bank as follows: 
 4.1 Immediately after giving effect to this Amendment (a) the representations and
warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as
of such date), and (b) no Event of Default has occurred and is continuing; 
 4.2 Borrower has the power and
authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

  
 3 

 4.3 The organizational documents of Borrower delivered to Bank on the Effective Date
remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;

 4.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under
the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or
decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
 4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order,
consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been
obtained or made; and 
 4.7 This Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and
equitable principles relating to or affecting creditors’ rights. 
 5. Counterparts. This Amendment may be
executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 6. Effectiveness. This Amendment shall be deemed effective upon (i) the due execution and delivery to Bank of this Amendment by each party hereto, (ii) the delivery to Bank of a
certified copy of its Borrowing Resolutions and (iii) payment by Borrower of all Bank Expenses and an amendment fee equal to Twenty Five Thousand Dollars ($25,000). 

  
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 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

											
	BANK	 		 	BORROWER	 	
				
	SILICON VALLEY BANK	 		 	MINDSPEED TECHNOLOGIES, INC.	 	
						
	By:	 	 /s/ Jack Garza
	 		 	By:	 	 /s/ Stephen Ananias
	 	
	 Name:
 Title:
	 	 Jack Garza
 Relationship
Manager
	 		 	 Name:
 Title:
	 	 Stephen Ananias

CFO
	 	

 EXHIBIT F 
 COMPLIANCE CERTIFICATE 
  

					
	 TO:
 FROM:
	 	 SILICON VALLEY BANK
 MINDSPEED
TECHNOLOGIES, INC.
	  	Date:                    

 The undersigned authorized officer of MINDSPEED TECHNOLOGIES, INC. (“Borrower”) certifies that
under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): (1) Borrower is in complete compliance for the period ending
                     with all required covenants except as noted below; (2) there are no Events of Default; (3) all representations
and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date;
(4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as
otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has
not previously provided written notification to Bank. 
 Attached are the required documents supporting the certification. The
undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at
any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined
herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	Complies
			
	 Quarterly financial statements with Compliance Certificate
	  	Quarterly within 45 days	  	Yes  No
	 Annual financial statement (CPA Audited)
	  	FYE within 120 days	  	Yes  No
	 10-Q, 10-K and 8-K
	  	Within 5 days after filing with SEC	  	Yes  No
	 Borrowing Base Certificate A/R & A/P Agings and Deferred Revenue Schedule
	  	Monthly within 30 days	  	Yes  No
	 Annual Board Approved Projections
	  	FYE within 45 days	  	Yes  No

  

							
	 Financial Covenant
	  	 Required
	  	 Actual
	  	 Complies

				
	Maintain on a Quarterly Basis (unless otherwise noted):	  		  		  	
	Minimum Liquidity Ratio	  	1.25:1.0	  	        :1.0	  	Yes  No
	Minimum Adjusted EBITDA**	  	See Schedule	  	$            	  	Yes  No
	Minimum Fixed Charge Coverage Ratio**	  	*	  	$            	  	Yes  No
	Minimum Cash and Cash Equivalent at Bank and/or subject to a Control Agreement	  	***	  	$            	  	Yes  No
	$30,000,000 of Convertible Notes issued	  	6/30/12	  	$            	  	Yes  No

	*	not less than (i) 1.10 to 1.00 for Borrower’s first, second and third fiscal quarters of 2014 and (ii) 1.25 to 1.00 for each of Borrower’s fiscal
quarters thereafter. 

	**	not applicable for any fiscal quarter if, as of the last day of any fiscal quarter, Borrower maintains (I) a Liquidity Ratio of at least 1.50 to 1.00 and (II) a
balance of unrestricted cash and Cash Equivalents at Bank plus cash and Cash Equivalents subject to a Control Agreement greater than (i) Twenty Five Million Dollars ($25,000,000) plus (ii) beginning on March 31, 2013, the outstanding
principal amount of the Existing Convertible Notes, if any. 

	***	(i) Fifteen Million Dollars ($15,000,000) plus (ii) beginning on March 31, 2013, the outstanding principal amount of the Existing Convertible Notes, if
any. 

  

							
	 Performance Pricing
	  	Applies	 
			
	 Liquidity Ratio < 1.35 to 1.00
	 	 LIBOR + 3.75%, Base Rate + 1.75%, Unused Fee 0.50%
	  	 	Yes  No	  
	 Liquidity Ratio 3 1.35 to 1.00 but £
1.50 to 1.00
	 	 LIBOR + 3.50%, Base Rate + 1.50%, Unused Fee 0.375%
	  	 	Yes  No	  
	 Liquidity Ratio > 1.50 to 1.00
	 	LIBOR + 3.25%, Base Rate + 1.25%, Unused Fee 0.25%	  	 	Yes  No	  

 The following financial covenant analyses and information set forth in Schedule 1 attached hereto are
true and accurate as of the date of this Certificate. 
 The following are the exceptions with respect to the certification
above: (If no exceptions exist, state “No exceptions to note.”) 
  

			
	  

	  

	  

	  
	  	

 

 MINDSPEED TECHNOLOGIES, INC. 

 

			
	By:	 	  

			
	Name:	 	  

			
	Title:	 	  

 

 BANK USE ONLY 

			
		
	Received by:	 	  

			
		 	AUTHORIZED SIGNER
	Date:	 	  

			
		 	
	Verified:	 	  

			
		 	AUTHORIZED SIGNER
	Date:	 	  

			
		 	
	Compliance Status:         Yes     No

 
 

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 
 In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 
 Dated:                      

 

	I.	Liquidity Ratio (Section 6.7(a)) 

Required:              1.25:1.00 
 Actual: 
  

							
	A.	  	Aggregate value of the unrestricted cash and cash equivalents of Borrower and Guarantors	  	$            	  	
				
	B.	  	Aggregate value of the net billed accounts receivable of Borrower and Guarantors	  	$            	  	
				
	C.	  	Beginning on March 31, 2013, the outstanding principal amount of the Existing Convertible Notes	  	$            	  	
				
	D.	  	Liquidity (the sum of lines A through C)	  	$            	  	
				
	E.	  	Aggregate value of all Indebtedness owing from Borrower to Bank	  	$            	  	
				
	F.	  	Liquidity Ratio (line D divided by line E)	  	               	  	

 Is line F equal to or greater than 1.25:1:00? 

 

			
	              No, not in compliance
	  	             Yes, in compliance

	II.	Adjusted EBITDA (Section 6.7(b)) 

Required: 
  

					
	 Measuring Period
	  	Adjusted EBITDA	 
		
	 Borrower’s third fiscal quarter of 2012
	  	($	3,000,000	) 
	 Borrower’s fourth fiscal quarter of 2012
	  	($	500,000	) 
	 Borrower’s first fiscal quarter of 2013
	  	$	1,500,000	  
	 Borrower’s second fiscal quarter of 2013
	  	$	1,500,000	  
	 Borrower’s third fiscal quarter of 2013
	  	$	4,000,000	  
	 Borrower’s fourth fiscal quarter of 2013
	  	$	6,000,000	  

 Actual: 
  

					
	A.	  	Net Income	  	$            
			
	B.	  	Interest Expense	  	$            
			
	C.	  	to the extent deducted in the calculation of Net Income, Depreciation expense	  	$            
			
	D.	  	to the extent deducted in the calculation of Net Income, Amortization expense	  	$            
			
	E	  	Income Tax Expense	  	$            
			
	F.	  	Other non-cash charges including but not limited to stock based compensation	  	$            
			
	G.	  	non-recurring charges incurred through the third fiscal quarter of 2013 (which shall include transaction fees related to the Acquisition, sign on bonuses, transitional employee
expenses, redundant contractual commitments and severance payment), which non-recurring charges shall be capped at Five Million Five Hundred Thousand Dollars ($5,500,000) in the aggregate	  	$            
			
	H.	  	non-recurring charges incurred in connection with any Permitted Acquisition approved by Bank in its sole discretion	  	$            
			
	I.	  	unusual, non-recurring or other extraordinary charges or expenses approved by Bank in its sole discretion	  	$            
			
	J.	  	pro forma cost savings and synergies approved by Bank in its sole discretion	  	$            
			
	K	  	to the extent covered by insurance proceeds, losses in connection with casualty events approved by Bank in its sole discretion	  	$            
			
	L.	  	Adjusted EBITDA (Line A plus Line B plus Line C plus Line D plus Line E plus Line F plus Line G plus line H plus Line I plus Line J plus Line K)	  	$            

 Is line L greater than or the equal to the amount required above? 

 

			
	              No, not in compliance
	  	             Yes, in compliance

	III.	Fixed Charge Coverage Ratio (Section 6.7(c)) 

 Required:              not less than (i) 1.10 to 1.00 for Borrower’s first, second and third fiscal quarters of 2014 and
(ii) 1.25 to 1.00 for each of Borrower’s fiscal quarters thereafter. 
 Actual: 

 

					
	A.	  	Adjusted EBITDA (value of line II.L above)	  	$            
			
	B.	  	Cash Taxes Paid	  	$            
			
	C.	  	IP Expenditures	  	$            
			
	D.	  	Capitalized Expenditures	  	$            
			
	E.	  	Interest expense	  	$            
			
	F.	  	Scheduled Principal Payments on all Indebtedness	  	$            
			
	G.	  	Fixed Charge Coverage Ratio: (Line A minus lines B, C and D all divided by Line E plus line F)	  	    : 1.00

 Is line G equal to or greater than the amount required above? 

 

			
	              No, not in compliance
	  	             Yes, in compliance

 BORROWING RESOLUTIONS 

[See attached] 

[Borrower to provide form of Secretary’s Certificate and Resolutions]EX-10.3

 Exhibit 10.3 

 
 

 
 MINDSPEED TECHNOLOGIES, INC. 

INDUCEMENT INCENTIVE PLAN 
 AWARD AGREEMENT FOR U.S. EMPLOYEES 
 STOCK OPTION TERMS AND CONDITIONS

  

	1.	Definitions 

 Capitalized
terms used and not defined herein shall have the respective meanings assigned to such terms in the Plan. As used in these Stock Option Terms and Conditions, the following words and phrases shall have the respective meanings ascribed to them below
unless the context in which any of them is used clearly indicates a contrary meaning: 
  

	 	(a)	Award Agreement: These Stock Option Terms and Conditions together with the Grant Letter. 

 

	 	(b)	Cause: (i) A felony conviction of a Participant; (ii) the commission by a Participant of an act of fraud or embezzlement against the Company
and/or a Subsidiary; (iii) willful misconduct or gross negligence materially detrimental to the Company and/or a Subsidiary; (iv) the Participant’s continued failure to implement reasonable requests or directions received in the
course of his or her employment; (v) the Participant’s wrongful dissemination or use of confidential or proprietary information; or (vi) the intentional and habitual neglect by the Participant of his or her duties to the Company
and/or a Subsidiary. 

  

	 	(c)	Disability: Permanent and total disability within the meaning of the Company’s long-term disability plan, as it may be amended from time to time, or,
if there is no such plan, as determined by the Committee. 

  

	 	(d)	FAST: Fidelity’s automated service telephone system that is used to facilitate stock option transactions. 

 

	 	(e)	Fidelity: Fidelity Stock Plan Services, the stock option administrator whom the Company has engaged to administer and process all stock option exercises.

  

	 	(f)	Grant Letter: The letter from the Company granting the stock option or stock options to the Employee or Non-Employee. 

 

	 	(g)	Mindspeed: Mindspeed Technologies, Inc., a Delaware corporation. 

 

	 	(h)	NASDAQ: The Nasdaq National Market. 

  
 U.S. May 2012 

 

 
  

	 	(i)	Options: The stock option or stock options listed in the first paragraph of the Grant Letter and which together with these Stock Option Terms and
Conditions constitutes the Award Agreement. 

  

	 	(j)	Option Shares: The shares of Mindspeed Common Stock issuable or transferable on exercise of the Options. 

 

	 	(k)	Plan: Mindspeed’s Inducement Incentive Plan, as such Plan may be amended and in effect at the relevant time. 

 

	 	(l)	Retirement: Retirement at or after age sixty two (62) or, with the advance consent of the Committee, before age sixty two (62) but at or after
age fifty five (55). 

  

	 	(m)	Web: Fidelity’s website that is used to facilitate stock option transactions and is accessible through Mindspeed MyNet. 

 

	2.	When Options May be Exercised 

 The Options are vested and may be exercised in accordance with the schedule included in the Grant Letter, provided that: 
  

	 	(a)	if you die while an employee of Mindspeed, your estate, or any person who acquires the Options by bequest or inheritance, may exercise all the Options not theretofore
exercised, within (and only within) the period beginning on your date of death (even if you die before you have become entitled to exercise all or any part of the Options) and ending three (3) years thereafter; 

 

	 	(b)	if your employment by Mindspeed terminates other than by death, then: 

  

	 	(i)	if your employment by Mindspeed is terminated for Cause, the Options shall expire forthwith upon your termination and may not be exercised thereafter; and

  

	 	(ii)	if your employment by Mindspeed terminates for any reason (including Retirement or Disability) not specified in subparagraph (a) or in clause (i) of this
subparagraph (b), you (or if you die after your termination date, your estate or any person who acquires the Options by bequest or inheritance) may thereafter exercise the Options within (and only within) the period ending three (3) months
after your termination date, but only to the extent they were exercisable on your termination date, it being understood that neither (i) your transfer from Mindspeed to a Subsidiary or affiliate of Mindspeed, whether or not incorporated, or
vice versa, or from one Subsidiary or affiliate of Mindspeed to another, nor (ii) a leave of absence duly authorized in writing by Mindspeed, shall be deemed a termination of employment; and 

  
 U.S. May 2012 

 
 2 

 

 
  

	 	(c)	the beginning exercise date of any unexercisable Options will be delayed for the length of time during which you are on an unpaid leave of absence duly authorized in
writing by Mindspeed that exceeds six (6) months. 

 The Committee may, in its discretion, extend the period
during which Options may be exercised beyond the period set forth in subparagraphs (a) and (b)(ii) above, but in no event shall the provisions of the foregoing subparagraphs (a) or (b)(ii) extend to a date more than eight (8) years
after the date of the grant, the period during which the Options may be exercised. 
  

	3.	Exercise Procedure 

  

	 	(a)	To exercise all or any part of the Options, you (or after your death, your estate or any person who has acquired the Options by bequest or inheritance) must:

  

	 	(i)	contact the administrator, Fidelity, by using the FAST or Web system or by speaking to a Fidelity customer service representative and follow the instructions provided;

  

	 	(ii)	confirm the Option transaction by receiving a confirmation number through the FAST or Web system or by speaking to a Fidelity customer service representative;

  

	 	(iii)	submit full payment of the exercise price for the Option Shares to be purchased on exercise of the Options: 

 

	 	•	 	 by check or cash; or 

  

	 	•	 	 in shares of Stock; or 

  

	 	•	 	 in a combination of check or cash and shares of Stock; and 

 

	 	(iv)	provide, in the case of any person other than you seeking to exercise the Options, such documents as Fidelity or the Secretary of Mindspeed shall require to establish
to their satisfaction that the person seeking to exercise the Options is entitled to do so. 

  
 U.S. May 2012 

 
 3 

 

 
  

	 	(b)	An exercise of the whole or any part of the Options shall be effective: 

  

	 	(i)	if you elect (or after your death, the person entitled to exercise the Options elects) to pay the exercise price for the Option Shares entirely by check or cash,
(1) upon confirmation of your transaction by using the FAST or Web system or by speaking to a Fidelity customer service representative and full payment of the exercise price and withholding taxes (if applicable) being received by Fidelity
within three (3) business days following the confirmation; and (2) receipt of any documents required pursuant to Section 3(a)(iv); and 

  

	 	(ii)	if you elect (or after your death, the person entitled to exercise the Options elects) to pay the exercise price of the Option Shares in shares of Stock or in a
combination of shares of Stock and check or cash, (1) upon confirmation of your transaction by using the FAST or Web system or by speaking to a Fidelity customer service representative and full payment of the exercise price (as defined in
Section 3(d)(i)) and withholding taxes (if applicable) being received by Fidelity within three (3) business days following the confirmation; and (2) receipt of any documents required pursuant to Section 3(a)(iv).

  

	 	(c)	If you choose (or after your death, the person entitled to exercise the Options chooses) to pay the exercise price for the Option Shares to be purchased on exercise of
any of the Options entirely by check or cash, payment must be made by: 

  

	 	•	 	 delivering to Fidelity a check or cash in the full amount of the exercise price for those Option Shares; or 

 

	 	•	 	 arranging with a stockbroker, bank or other financial institution to deliver to Fidelity full payment, by check, cash or (if prior arrangements are
made with Fidelity) by wire transfer, of the exercise price of those Option Shares. 

 In either event, in
accordance with Section 3(e), full payment of the exercise price for the Option Shares purchased must be made within three (3) business days after the exercise has been conducted and confirmed through the FAST or Web system or by speaking
to a Fidelity customer service representative. 
  

					
	  (d)	 	  (i)	    	If you choose (or after your death, the person entitled to exercise the Options chooses) to use already-owned Stock to pay all or part of the exercise price for the Option Shares to
be purchased on exercise of any of the Options, you (or after your death, the person entitled to exercise the Options) must deliver to Fidelity one or more certificates (and executed stock powers), or authorize the book-entry transfer to Mindspeed
of shares of Stock, representing:

  

	 	•	 	 at least the number of shares of Stock whose value, based on the closing price of the Stock reported on NASDAQ on the day you exercised your Options
through the FAST or Web system or by speaking to a Fidelity customer service representative, equals the exercise price for those Option Shares; or 

  
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	 	•	 	 any lesser number of shares of Stock you desire (or after your death, the person entitled to exercise the Options desires) to use to pay the exercise
price for those Option Shares and a check or cash in the amount of such exercise price less the value of the Stock delivered, based on the closing price of the Stock reported on NASDAQ on the day you exercised your Options through the FAST or Web
system or by speaking to a Fidelity customer service representative. 

 In the event you are using shares of
Stock acquired from a Mindspeed benefit plan, including but not limited to a stock option plan, restricted stock plan, performance share plan and employee stock purchase plan, these shares of Stock must have been held for a minimum of six
(6) months from the date of acquisition. You will be required to provide proper documentation attesting to the fact that the shares of Stock used to pay all or part of the exercise price for the Option Shares are mature shares of Stock. In the
event you are using shares of Stock purchased on the open market, there is no required holding period. 
  

	 	(ii)	Fidelity will advise you (or any other person who, being entitled to do so, exercises the Options) of the exact number of shares of Stock, valued in accordance with
Section 4 of the Plan at the closing price reported on NASDAQ on the effective date of exercise under Section 3(a)(ii), and any funds required to pay in full the exercise price for the Option Shares purchased. In accordance with
Section 3(e), you (or such other person) must pay, by check or cash, in shares of Stock or in a combination of check or cash and shares of Stock, any balance required to pay in full the exercise price of the Option Shares purchased within three
(3) business days following the confirmation of such exercise of the Options under Section 3(a)(ii). 

  

	 	(iii)	Notwithstanding any other provision of the Award Agreement, the Secretary of Mindspeed may limit the number, frequency or volume of successive exercises of any of the
Options in which payment is made, in whole or in part, by delivery of shares of Stock pursuant to this subparagraph (d) to prevent unreasonable pyramiding of such exercises. 

  
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	 	(e)	An exercise conducted and confirmed through the FAST or Web system or by speaking to a Fidelity customer service representative, whether or not full payment of the
exercise price for the Option Shares is received by Fidelity, shall constitute a binding contractual obligation by you (or the other person entitled to exercise the Options) to proceed with and complete that exercise of the Options (but only so long
as you continue, or the other person entitled to exercise the Options continues, to be entitled to exercise the Options on that date). By your acceptance of this Award Agreement, you agree (for yourself and on behalf of any other person who becomes
entitled to exercise the Options) to deliver or cause to be delivered to Fidelity any balance of the exercise price for the Option Shares to be purchased upon the exercise pursuant to the transaction conducted through the FAST or Web system or by
speaking to a Fidelity customer service representative required to pay in full the exercise price for those Option Shares, that payment being by check, cash, wire transfer, in shares of Stock or in a combination of check or cash and shares of Stock,
on or before the third (3rd) business day after the date on which you confirm the transaction through the FAST or Web system or by speaking to a Fidelity customer service representative. If such payment is not made, you (for yourself and on
behalf of any other person who becomes entitled to exercise the Options) authorize Mindspeed, in its discretion, to set off against salary payments or other amounts due or which may become due you (or the other person entitled to exercise the
Options) any balance of the exercise price for those Option Shares remaining unpaid thereafter. 

  

	 	(f)	A book-entry statement representing the number of Option Shares purchased will be issued as soon as practicable (i) after Fidelity has received full payment
therefor or (ii) at Mindspeed’s or Fidelity’s election in their sole discretion, after Mindspeed or Fidelity has received (x) full payment of the exercise price of those Option Shares and (y) any reimbursement in respect of
withholding taxes due pursuant to Section 5. 

  

	4.	Transferability 

 No
Options or portion thereof shall be transferable by you otherwise than (i) by will or by laws of descent and distribution, (ii) by gift to members of your immediate family, (iii) to a trust established for the benefit of one or more
members of your immediate family or (iv) as otherwise determined by the Committee. For purposes of the Plan, “immediate family” shall mean your spouse and natural, adopted or step-children and grandchildren. Notwithstanding any
transfer of an Option or portion thereof, the transferred Option shall continue to be subject to the Plan and Award Agreement as were applicable to you immediately prior to the transfer, as if the Option had not been transferred. 

  
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	5.	Withholding 

 Mindspeed or
Fidelity shall have the right, in connection with the exercise of the Options in whole or in part, to deduct from any payment to be made by Mindspeed or Fidelity under the Plan an amount equal to the taxes required to be withheld by law with respect
to such exercise or to require you (or any other person entitled to exercise the Options) to pay to it an amount sufficient to provide for any such taxes so required to be withheld. By your acceptance of this Award Agreement, you agree (for yourself
and on behalf of any other person who becomes entitled to exercise the Options) that if Mindspeed or Fidelity elects to require you (or such other person) to remit an amount sufficient to pay such withholding taxes, you (or such other person) must
remit that amount within three (3) business days after the confirmation of the Option exercise (Section 3(a)(ii)). If such payment is not made, Mindspeed, in its discretion, shall have the same right of set-off with respect to payment of the
withholding taxes in connection with the exercise of the Option as provided under Section 3(e) with respect to payment of the exercise price. 
  

	6.	Rights as Shareholder 

You will not have any rights as a shareholder with respect to any Option Shares unless and until you become the holder of such Option
Shares on the books and records of Mindspeed. No dividends or dividend equivalents will be paid by Mindspeed with respect to the Option Shares. 
  

	7.	Headings 

 The section
headings contained in these Stock Option Terms and Conditions are solely for the purpose of reference, are not part of the agreement of the parties and shall in no way affect the meaning or interpretation of this Award Agreement. 

 

	8.	References 

 All
references in these Stock Option Terms and Conditions to sections, paragraphs, subparagraphs or clauses shall be deemed to be references to sections, paragraphs, subparagraphs and clauses of these Stock Option Terms and Conditions unless otherwise
specifically provided. 
  

	9.	Amendment and Termination 

I understand that Mindspeed has reserved the right to amend or terminate the Plan at any time, and that the grant of an Option in one year
or at one time does not in any way obligate Mindspeed or its affiliates to make a grant in any future year or in any given amount. I acknowledge and understand that the grant is wholly discretionary in nature and is not to be

  
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considered part of any normal or expected compensation that is or would be subject to severance, resignation, redundancy or similar pay, other than to the extent required by local law.

  

	10.	Entire Agreement 

 This
Award Agreement and the Plan embody the entire agreement and understanding between Mindspeed and you with respect to the Options, and there are no representations, promises, covenants, agreements or understandings with respect to the Options other
than those expressly set forth in this Award Agreement and the Plan. 
  

	11.	Applicable Laws and Regulations 

 This Award Agreement and Mindspeed’s obligation to issue Option Shares hereunder are governed by the laws of the State of Delaware, without regard to its conflicts of laws principles, and the Federal
law of the United States. 

  
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