Document:

Exhibit 10.2

Exhibit 10.2

MINDSPEED TECHNOLOGIES, INC.

EMPLOYEE STOCK PURCHASE PLAN

The following constitute the provisions of the Employee Stock Purchase Plan of Mindspeed
Technologies, Inc.

1. Purpose. The purpose of the Plan (as defined below) is to provide Employees (as
defined below) of the Company (as defined below) and its Designated Parents (as defined below) or
Subsidiaries (as defined below) with an opportunity to purchase Common Stock (as defined below) of
the Company through accumulated payroll deductions. It is the intention of the Company to have the
Plan qualify as an “employee stock purchase plan” under Section 423 of the Code (as defined below)
and the applicable regulations thereunder. The provisions of the Plan, accordingly, shall be
construed so as to extend and limit participation in a manner consistent with the requirements of
that section of the Code.

2. Definitions. As used herein, the following definitions shall apply:

(a) “Administrator” means either the Board or a committee of the Board that is
responsible for the administration of the Plan as is designated from time to time by resolution of
the Board.

(b) “Applicable Laws” means the legal requirements relating to the administration of
employee stock purchase plans, if any, under applicable provisions of federal securities laws,
state corporate and securities laws, the Code and the applicable regulations thereunder, the rules
of any applicable stock exchange or national market system, and the rules of any foreign
jurisdiction applicable to participation in the Plan by residents therein.

(c) “Board” means the Board of Directors of the Company.

(d) “Code” means the Internal Revenue Code of 1986, as amended.

(e) “Common Stock” means the common stock of the Company.

(f) “Company” means Mindspeed Technologies, Inc, a Delaware corporation.

(g) “Compensation” means an Employee’s base salary from the Company or one or more
Designated Parents or Subsidiaries, including such amounts of base salary as are deferred by the
Employee: (i) under a qualified cash or deferred arrangement described in Section 401(k) of the
Code; or (ii) to a plan qualified under Section 125 of the Code. “Compensation” does not include
overtime, bonuses, annual awards, other incentive payments, reimbursements or other expense
allowances, fringe benefits (cash or non-cash), moving expenses, deferred compensation,
contributions (other than contributions described in the first sentence) made on the Employee’s
behalf by the Company or one or more Designated Parents or Subsidiaries under any employee benefit
or welfare plan now or hereafter established, and any other payments not specifically referenced in
the first sentence.

 

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(h) “Corporate Transaction” means any of the following transactions:

(i) a merger or consolidation in which the Company is not the surviving entity, except for a
transaction the principal purpose of which is to change the state in which the Company is
incorporated;

(ii) the sale, transfer or other disposition of all or substantially all of the assets of the
Company (including the capital stock of the Company’s subsidiary corporations);

(iii) the complete liquidation or dissolution of the Company;

(iv) any reverse merger or series of related transactions culminating in a reverse merger
(including, but not limited to, a tender offer followed by a reverse merger) in which the Company
is the surviving entity but in which securities possessing more than fifty percent (50%) of the
total combined voting power of the Company’s outstanding securities are transferred to a person or
persons different from those who held such securities immediately prior to such merger or the
initial transaction culminating in such merger; or

(v) acquisition in a single or series of related transactions by any person or related group
of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding securities, but
excluding any such transaction or series of related transactions that the Administrator determines
shall not be a Corporate Transaction.

(i) “Designated Parents or Subsidiaries” means the Parents or Subsidiaries, which have
been designated by the Administrator from time to time as eligible to participate in the Plan.

(j) “Effective Date” means the date of the approval of the Plan by the Company’s
stockholders. However, should any Parent or Subsidiary become a Designated Parent or Subsidiary
after such date, then the Administrator, in its discretion, shall designate a separate Effective
Date with respect to the employee-participants of such Designated Parent or Subsidiary.

(k) “Employee” means any individual, including an officer or director, who is an
employee of the Company or a Designated Parent or Subsidiary for purposes of Section 423 of the
Code. For purposes of the Plan, the employment relationship shall be treated as continuing intact
while the individual is on sick leave or other leave of absence approved by the individual’s
employer. Where the period of leave exceeds ninety (90) days and the individual’s right to
reemployment is not guaranteed either by statute or by contract, the employment relationship will
be deemed to have terminated on the ninety-first (91st) day of such leave, for purposes of
determining eligibility to participate in the Plan.

(l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

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(m) “Exercise Date” means the last day of each Purchase Period.

(n) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

(i) If the Common Stock is listed on one or more established stock exchanges, including
without limitation, The NASDAQ Global Select Market, The NASDAQ Global Market or The NASDAQ Capital
Market of The Nasdaq Stock Market LLC, its Fair Market Value shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on the principal exchange or
system on which the Common Stock is listed (as determined by the Administrator) on the date of
determination (or, if no closing sales price or closing bid was reported on that date, as
applicable, on the last trading date such closing sales price or closing bid was reported), as
reported in The Wall Street Journal or such other source as the Administrator deems reliable;

(ii) If the Common Stock is regularly quoted on an automated quotation system (including the
OTC Bulletin Board) or by a recognized securities dealer, but selling prices are not reported, its
Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock
on the date of determination (or, if no such prices were reported on that date, on the last date
such prices were reported), as reported in The Wall Street Journal or such other source as the
Administrator deems reliable; or

(iii) In the absence of an established market for the Common Stock of the type described in
(i) and (ii), above, its Fair Market Value shall be determined by the Administrator in good faith.

(o) “New Exercise Date” has the meaning set forth in Section 18(b).

(p) “Offer Period” means an Offer Period established pursuant to Section 4.

(q) “Offering Date” means the first day of each Offer Period.

(r) “Parent” means a “parent corporation” of the Company, whether now or hereafter
existing, as defined in Section 424(e) of the Code.

(s) “Participant” means an Employee of the Company or Designated Parent or Subsidiary
who has enrolled in the Plan as set forth in Section 5(a).

(t) “Plan” means this Employee Stock Purchase Plan.

(u) “Purchase Period” means a period specified as such pursuant to Section 4(b).

(v) “Purchase Price” means an amount equal to 85% of the Fair Market Value of a share
of Common Stock on the Offering Date or on the Exercise Date, whichever is lower.

(w) “Reserves” means, as of any date, the sum of : (1) the number of shares of Common
Stock covered by each then outstanding option under the Plan which has not yet been exercised; and (2) the number of shares of Common Stock which have been authorized for
issuance under the Plan, but not then subject to an outstanding option.

 

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(x) “Subsidiary” means a “subsidiary corporation” of the Company, whether now or
hereafter existing, as defined in Section 424(f) of the Code.

3. Eligibility.

(a) General. Subject to the further limitations in Sections 3(b) and 3(c), any
individual who is an Employee on a given Offering Date shall be eligible to participate in the Plan
for the Offer Period commencing with such Offering Date. No individual who is not an Employee
shall be eligible to participate in the Plan.

(b) Limitations on Grant and Accrual. Any provisions of the Plan to the contrary
notwithstanding, no Employee shall be granted an option under the Plan: (i) if, immediately after
the grant, such Employee (taking into account stock owned by any other person whose stock would be
attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold
outstanding options to purchase stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company or of any Parent or Subsidiary; or
(ii) which permits the Employee’s rights to purchase stock under all employee stock purchase plans
of the Company and its Parents or Subsidiaries to accrue at a rate which exceeds Twenty-Five
Thousand Dollars (US$25,000) worth of stock (determined at the Fair Market Value of the shares at
the time such option is granted) for each calendar year in which such option is outstanding at any
time. The determination of the accrual of the right to purchase stock shall be made in accordance
with Section 423(b)(8) of the Code and the regulations thereunder. No more than Two Hundred Fifty
Thousand (250,000) shares of Common Stock may be purchased during any Offer Period.

(c) Other Limits on Eligibility. Notwithstanding Subsection (a), above, the following
Employees shall not be eligible to participate in the Plan for any relevant Offer Period: (i)
Employees whose customary employment is 20 or fewer hours per week; (ii) Employees whose customary
employment is for not more than 5 months in any calendar year; (iii) Employees who have not been
employed since the first day of the enrollment period preceding an Offer Period (such enrollment
period not to exceed two months); and (iv) Employees who are subject to rules or laws of a foreign
jurisdiction that prohibit or make the participation of such Employees in the Plan violative of
other applicable laws.

4. Offer Periods.

(a) The Plan shall be implemented through overlapping or consecutive Offer Periods until such
time as: (i) the maximum number of shares of Common Stock available for issuance under the Plan
shall have been purchased; or (ii) the Plan shall have been sooner terminated in accordance with
Section 19. The maximum duration of an Offer Period shall be twenty-seven (27) months. Initially,
the Plan shall be implemented through consecutive Offer Periods of six (6) months’ duration
commencing each June 1 and December 1 following the Effective Date.

 

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(b) A Participant shall be granted a separate option for each Offer Period in which he or she
participates. The option shall be granted on the Offering Date and shall be automatically
exercised on the last day of the Offer Period. However, with respect to any Offer Period, the
Administrator may specify shorter Purchase Periods within an Offer Period, such that the option
granted on the Offering Date shall be automatically exercised in successive installments on the
last day of each Purchase Period ending within the Offer Period.

(c) If on the first day of any Purchase Period in an Offer Period in which an Employee is a
Participant, the Fair Market Value of the Common Stock is less than the Fair Market Value of the
Common Stock on the Offering Date of the Offer Period (after taking into account any adjustment
during the Offer Period pursuant to Section 18(a)), the Offer Period shall be terminated
automatically and the Participant shall be enrolled automatically in the new Offer Period which has
its first Purchase Period commencing on that date, provided the Employee is eligible to participate
in the Plan on that date and has not elected to terminate participation in the Plan.

(d) Except as specifically provided herein, the acquisition of Common Stock through
participation in the Plan for any Offer Period shall neither limit nor require the acquisition of
Common Stock by a Participant in any subsequent Offer Period.

5. Participation.

(a) An eligible Employee may become a Participant in the Plan by submitting an authorization
of payroll deduction (using such form or method (including electronic forms) as the Administrator
may designate from time to time) as of a date in advance of the Offering Date for the Offer Period
in which such participation will commence, as required by the Administrator for all eligible
Employees with respect to a given Offer Period.

(b) Payroll deductions for a Participant shall commence with the first partial or full payroll
period beginning on the Offering Date and shall end on the last complete payroll period during the
Offer Period, unless sooner terminated by the Participant as provided in Section 10.

6. Payroll Deductions.

(a) At the time a Participant enrolls in the Plan, the Participant shall elect to have payroll
deductions made during the Offer Period in amounts between one percent (1%) and not exceeding ten
percent (10%) of the Compensation which the Participant receives during the Offer Period.

(b) All payroll deductions made for a Participant shall be credited to the Participant’s
account under the Plan and will be withheld in whole percentages only. A Participant may not make
any additional payments into such account.

 

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(c) A Participant may discontinue participation in the Plan as provided in Section 10, or may
increase or decrease the rate of payroll deductions during the Offer Period by submitting notice of
a change of status (using such form or method (including electronic forms) as the Administrator may
designate from time to time) authorizing an increase or decrease in the payroll deduction rate. Any increase or decrease in the rate of a Participant’s payroll
deductions shall be effective as soon as administratively practicable following the date of the
request. A Participant’s payroll deduction authorization (as modified by any change of status
notice) shall remain in effect for successive Offer Periods unless terminated as provided in
Section 10. The Administrator shall be authorized to limit the number of payroll deduction rate
changes during any Offer Period.

(d) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of
the Code and Section 3(b) herein, a Participant’s payroll deductions shall be decreased to 0%.
Payroll deductions shall recommence at the rate provided in such Participant’s payroll deduction
authorization, as amended, when permitted under Section 423(b)(8) of the Code and Section 3(b),
unless such participation is sooner terminated by the Participant as provided in Section 10.

7. Grant of Option. On the Offering Date, each Participant shall be granted an option
to purchase (at the applicable Purchase Price) shares of Common Stock; provided: (i) that such
option shall be subject to the limitations set forth in Sections 3(b), 6 and 12; and (ii) the
maximum number of shares of Common Stock a Participant shall be permitted to purchase in any Offer
Period shall be the number of shares determined by dividing $12,500 by the Fair Market Value of a
share of Common Stock on the Offering Date, subject to adjustment as provided in Section 18.
Exercise of the option shall occur as provided in Section 8, unless the Participant has withdrawn
pursuant to Section 10, and the option, to the extent not exercised, shall expire on the last day
of the Offer Period with respect to which such option was granted. Notwithstanding the foregoing,
shares subject to the option may only be purchased with accumulated payroll deductions credited to
a Participant’s account in accordance with Section 6. In addition, to the extent an option is not
exercised on an Exercise Date, the option shall lapse and thereafter cease to be exercisable.

8. Exercise of Option. Unless a Participant withdraws from the Plan as provided in
Section 10, the Participant’s option for the purchase of shares of Common Stock will be exercised
automatically on each Exercise Date, by applying the accumulated payroll deductions in the
Participant’s account to purchase the number of full shares subject to the option by dividing such
Participant’s payroll deductions accumulated prior to such Exercise Date and retained in the
Participant’s account as of the Exercise Date by the applicable Purchase Price. No fractional
shares will be purchased; any payroll deductions accumulated in a Participant’s account which are
not sufficient to purchase a full share shall be returned to the Participant as soon as
administratively practicable, without interest. In addition, any amount remaining in a
Participant’s account following the purchase of shares on the Exercise Date due to the application
of Section 423(b)(8) of the Code or Section 7, shall be returned to the Participant and shall not
be carried over to the next Offer Period or Purchase Period. During a Participant’s lifetime, a
Participant’s option to purchase shares hereunder is exercisable only by the Participant.

 

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9. Delivery. Upon receipt of a request from a Participant after each Exercise Date on
which a purchase of shares occurs, the Company shall arrange for the delivery to such Participant,
as soon as administratively practicable, of the shares purchased upon exercise of the
Participant’s option. The Company may arrange for delivery of such shares to an account for
the benefit of a Participant established with a third party designated by the Company.

10. Withdrawal; Termination of Employment.

(a) A Participant may either: (i) withdraw all but not less than all the payroll deductions
credited to the Participant’s account and not yet used to exercise the Participant’s option under
the Plan; or (ii) terminate future payroll deductions, but allow accumulated payroll deductions to
be used to exercise the Participant’s option under the Plan at any time by giving notice to the
Company (using such form or method (including electronic forms) as the Administrator may designate
from time to time). If the Participant elects withdrawal alternative (i) described above, all of
the Participant’s payroll deductions credited to the Participant’s account will be paid to such
Participant as soon as administratively practicable after receipt of notice of withdrawal, such
Participant’s option for the Offer Period will be automatically terminated, and no further payroll
deductions for the purchase of shares will be made during the Offer Period. If the Participant
elects withdrawal alternative (ii) described above, no further payroll deductions for the purchase
of shares will be made during the Offer Period, all of the Participant’s payroll deductions
credited to the Participant’s account will be applied to the exercise of the Participant’s option
on the next Exercise Date (subject to Sections 3(b), 6, 7 and 12), and after such Exercise Date,
such Participant’s option for the Offer Period will be automatically terminated and all remaining
accumulated payroll deduction amounts shall be returned to the Participant. If a Participant
withdraws from an Offer Period, payroll deductions will not resume at the beginning of the
succeeding Offer Period unless the Participant enrolls in such succeeding Offer Period.

(b) Upon termination of a Participant’s employment relationship (as described in Section 2(k))
prior to the next scheduled Exercise Date, the payroll deductions credited to such Participant’s
account during the Offer Period but not yet used to exercise the option will be returned to such
Participant or, in the case of his/her death, to the person or persons entitled thereto under
Section 14, and such Participant’s option will be automatically terminated without exercise of any
portion of such option.

11. Interest. No interest shall accrue on the payroll deductions credited to a
Participant’s account under the Plan.

12. Stock.

(a) The maximum number of shares of Common Stock which shall be made available for sale under
the Plan shall be Five Hundred Thousand (500,000) shares, subject to adjustment upon changes in
capitalization of the Company as provided in Section 18. With respect to any amendment to increase
the total number of shares of Common Stock under the Plan, the Administrator shall have discretion
to disallow the purchase of any increased shares of Common Stock for Offer Periods in existence
prior to such increase. If the Administrator determines that on a given Exercise Date the number
of shares with respect to which options are to be exercised may exceed (x) the number of shares
then available for sale under the Plan or (y) the number of shares available for sale under the
Plan on the Offering Date(s) of one or more of the Offer Periods in which such Exercise Date is to
occur, the Administrator may make a pro rata

 

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allocation of the shares remaining available for purchase on such Offering Dates or Exercise
Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine to be
equitable, and shall either continue all Offer Periods then in effect or terminate any one or more
Offer Periods then in effect pursuant to Section 19. Any amount remaining in a Participant’s
payroll account following such pro rata allocation shall be returned to the Participant and shall
not be carried over to any future Purchase Period or Offer Period, as determined by the
Administrator.

(b) A Participant will have no interest or voting right in shares covered by the Participant’s
option until such shares are actually purchased on the Participant’s behalf in accordance with the
applicable provisions of the Plan. No adjustment shall be made for dividends, distributions or
other rights for which the record date is prior to the date of such purchase.

(c) Shares to be delivered to a Participant under the Plan will be registered in the name of
the Participant.

13. Administration. The Plan shall be administered by the Administrator, which shall
have full and exclusive discretionary authority to construe, interpret and apply the terms of the
Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every
finding, decision and determination made by the Administrator shall, to the full extent permitted
by Applicable Law, be final and binding upon all persons.

14. Designation of Beneficiary.

(a) Each Participant will file a designation (using such form or method (including electronic
forms) as the Administrator may designate from time to time) of a beneficiary who is to receive any
shares and cash, if any, from the Participant’s account under the Plan in the event of such
Participant’s death. If a Participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.

(b) Such designation of beneficiary may be changed by the Participant (and the Participant’s
spouse, if any) at any time by written notice. In the event of the death of a Participant and in
the absence of a beneficiary validly designated under the Plan who is living (or in existence) at
the time of such Participant’s death, the Company shall deliver such shares and/or cash to the
executor or administrator of the estate of the Participant, or if no such executor or administrator
has been appointed (to the knowledge of the Administrator), the Administrator shall deliver such
shares and/or cash to the spouse (or domestic partner, as determined by the Administrator) of the
Participant, or if no spouse (or domestic partner) is known to the Administrator, then to the issue
of the Participant, such distribution to be made per stirpes (by right of representation), or if no
issue are known to the Administrator, then to the heirs at law of the Participant determined in
accordance with Section 27.

 

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15. Transferability. No payroll deductions credited to a Participant’s account,
options granted hereunder, or any rights with regard to the exercise of an option or to receive
shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way
(other than by will, the laws of descent and distribution, or as provided in Section 14) by the
Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be
without effect, except that the Administrator may, in its sole discretion, treat such act as an
election to withdraw funds from an Offer Period in accordance with Section 10.

16. Use of Funds. All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions or hold them exclusively for the benefit of Participants. All
payroll deductions received or held by the Company may be subject to the claims of the Company’s
general creditors. Participants shall have the status of general unsecured creditors of the
Company. Any amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured
obligations for all purposes, including, without limitation, Title I of the Employee Retirement
Income Security Act of 1974, as amended. The Company shall retain at all times beneficial
ownership of any investments, including trust investments, which the Company may make to fulfill
its payment obligations hereunder. Any investments or the creation or maintenance of any trust or
any Participant account shall not create or constitute a trust or fiduciary relationship between
the Administrator, the Company or any Designated Parent or Subsidiary and a Participant, or
otherwise create any vested or beneficial interest in any Participant or the Participant’s
creditors in any assets of the Company or a Designated Parent or Subsidiary. The Participants shall
have no claim against the Company or any Designated Parent or Subsidiary for any changes in the
value of any assets that may be invested or reinvested by the Company with respect to the Plan.

17. Reports. Individual accounts will be maintained for each Participant in the Plan.
Statements of account will be given to Participants at least annually, which statements will set
forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

18. Adjustments Upon Changes in Capitalization; Corporate Transactions.

(a) Adjustments Upon Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the Reserves, the Purchase Price, the maximum number of shares that
may be purchased in any Offer Period or Purchase Period, as well as any other terms that the
Administrator determines require adjustment may be proportionately adjusted for: (i) any increase
or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Common Stock; (ii) any other
increase or decrease in the number of issued shares of Common Stock effected without receipt of
consideration by the Company; or (iii) as the Administrator may determine in its discretion, any
other transaction with respect to Common Stock, including a corporate merger, consolidation,
acquisition of property or stock, separation (including a spin-off or other distribution of stock
or property), reorganization, liquidation (whether partial or complete) or any similar transaction;
provided, however, that conversion of any convertible securities of the Company shall not be deemed
to have been “effected without receipt of consideration.” Such adjustment, if any, shall be made
by the Administrator and its determination shall be final, binding and conclusive. Except as the
Administrator determines, no issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof shall be made with
respect to, the Reserves and the Purchase Price.

 

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(b) Corporate Transactions. In the event of a proposed Corporate Transaction, each
option under the Plan shall be assumed by such successor corporation or a parent or subsidiary of
such successor corporation, unless the Administrator, in the exercise of its sole discretion and in
lieu of such assumption, determines to shorten the Offer Period then in progress by setting a new
Exercise Date (the “New Exercise Date”). If the Administrator shortens the Offer Period
then in progress in lieu of assumption in the event of a Corporate Transaction, the Administrator
shall notify each Participant in writing at least ten (10) business days prior to the New Exercise
Date, that the Exercise Date for the Participant’s option has been changed to the New Exercise Date
and that either:

(i) the Participant’s option will be exercised automatically on the New Exercise Date, unless
prior to such date the Participant has withdrawn from the Offer Period as provided in Section 10;
or

(ii) the Company shall pay to the Participant on the New Exercise Date an amount in cash, cash
equivalents, or property as determined by the Administrator that is equal to the excess, if any, of
(x) the Fair Market Value of the shares subject to the option over (y) the Purchase Price due had
the Participant’s option been exercised automatically under Subsection (b)(i) above. In addition,
all remaining accumulated payroll deduction amounts shall be returned to the Participant.

(c) For purposes of Section 18(b), an option granted under the Plan shall be deemed to be
assumed if, in connection with the Corporate Transaction, the option is replaced with a comparable
option with respect to shares of capital stock of the successor corporation or Parent thereof. The
determination of option comparability shall be made by the Administrator prior to the Corporate
Transaction and its determination shall be final, binding and conclusive on all persons.

19. Amendment or Termination.

(a) The Administrator may at any time and for any reason terminate or amend the Plan. Except
as provided in Section 18, no such termination can adversely affect options previously granted,
provided that the Plan or any one or more Offer Periods may be terminated by the Administrator on
any Exercise Date or by the Administrator establishing a new Exercise Date with respect to any
Offer Period and/or any Purchase Period then in progress if the Administrator determines that the
termination of the Plan or such one or more Offer Periods is in the best interests of the Company
and its stockholders. Except as provided in Section 18 and this Section 19, no amendment may make
any change in any option theretofore granted which adversely affects the rights of any Participant
without the consent of affected Participants. To the extent necessary to comply with Section 423
of the Code (or any successor rule or provision or any other Applicable Law), the Company shall
obtain stockholder approval of any amendment in such a manner and to such a degree as required.

 

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(b) Without stockholder consent and without regard to whether any Participant rights may be
considered to have been “adversely affected,” the Administrator shall be entitled to limit the
frequency and/or number of changes in the amount withheld during Offer Periods, change the length
of Purchase Periods within any Offer Period, determine the length of any future Offer Period,
determine whether future Offer Periods shall be consecutive or overlapping, establish the exchange
ratio applicable to amounts withheld in a currency other than U.S. dollars, establish or change
Plan or per Participant limits on share purchases, establish additional terms, conditions, rules or
procedures to accommodate the rules or laws of applicable foreign jurisdictions, permit payroll
withholding in excess of the amount designated by a Participant in order to adjust for delays or
mistakes in the Company’s processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Common Stock for each Participant properly correspond with
amounts withheld from the Participant’s Compensation, and establish such other limitations or
procedures as the Administrator determines in its sole discretion advisable and which are
consistent with the Plan, in each case to the extent consistent with the requirements of Code
Section 423 and other Applicable Laws.

20. Notices. All notices or other communications by a Participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Administrator at the location, or by the person, designated by the
Administrator for the receipt thereof.

21. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant
thereto shall comply with all Applicable Laws and shall be further subject to the approval of
counsel for the Company with respect to such compliance. As a condition to the exercise of an
option, the Company may require the Participant to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without any present intention
to sell or distribute such shares if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned Applicable Laws or is otherwise advisable.
In addition, no options shall be exercised or shares issued hereunder before the Plan has been
approved by stockholders of the Company as provided in Section 23.

22. Term of Plan. The Plan shall become effective upon the earlier to occur of its
adoption by the Board or its approval by the stockholders of the Company. It shall continue in
effect for a term of twenty (20) years unless sooner terminated under Section 19.

23. Stockholder Approval. Continuance of the Plan shall be subject to approval by the
stockholders of the Company within twelve (12) months before or after the date the Plan is adopted.
Such stockholder approval shall be obtained in the degree and manner required under Applicable
Laws.

24. No Employment Rights. The Plan does not, directly or indirectly, create any right
for the benefit of any employee or class of employees to purchase any shares under the Plan, or
create in any employee or class of employees any right with respect to continuation of employment
by the Company or a Designated Parent or Subsidiary, and it shall not be deemed to interfere in any way with such employer’s right to terminate, or otherwise modify, an
employee’s employment at any time.

 

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25. No Effect on Retirement and Other Benefit Plans. Except as specifically provided
in a retirement or other benefit plan of the Company or a Designated Parent or Subsidiary,
participation in the Plan shall not be deemed compensation for purposes of computing benefits or
contributions under any retirement plan of the Company or a Designated Parent or Subsidiary, and
shall not affect any benefits under any other benefit plan of any kind or any benefit plan
subsequently instituted under which the availability or amount of benefits is related to level of
compensation. The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement
Income Security Act of 1974, as amended.

26. Effect of Plan. The provisions of the Plan shall, in accordance with its terms,
be binding upon, and inure to the benefit of, all successors of each Participant, including,
without limitation, such Participant’s estate and the executors, administrators or trustees
thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors
of such Participant.

27. Governing Law. The Plan is to be construed in accordance with and governed by the
internal laws of the State of California (as permitted by Section 1646.5 of the California Civil
Code, or any similar successor provision) without giving effect to any choice of law rule that
would cause the application of the laws of any jurisdiction other than the internal laws of the
State of California to the rights and duties of the parties, except to the extent the internal laws
of the State of California are superseded by the laws of the United States. Should any provision
of the Plan be determined by a court of law to be illegal or unenforceable, the other provisions
shall nevertheless remain effective and shall remain enforceable.

28. Dispute Resolution. The provisions of this Section 28 shall be the exclusive
means of resolving disputes arising out of or relating to the Plan. The Company and the
Participant, or their respective successors (the “parties”), shall attempt in good faith to
resolve any disputes arising out of or relating to the Plan by negotiation between individuals who
have authority to settle the controversy. Negotiations shall be commenced by either party by
notice of a written statement of the party’s position and the name and title of the individual who
will represent the party. Within thirty (30) days of the written notification, the parties shall
meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem
necessary, to resolve the dispute. If the dispute has not been resolved by negotiation, the
parties agree that any suit, action, or proceeding arising out of or relating to the Plan shall be
brought in the United States District Court for the Central District of California (or should such
court lack jurisdiction to hear such action, suit or proceeding, in a California state court in the
County of Orange) and that the parties shall submit to the jurisdiction of such court. The parties
irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the
laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO
EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR
PROCEEDING. If any one or more provisions of this Section 28 shall for any reason be held invalid
or unenforceable, it is the specific intent of the parties that such provisions shall be modified
to the minimum extent necessary to make it or its application valid and enforceable.

 

12Exhibit 10.3

Exhibit 10.3

MINDSPEED TECHNOLOGIES, INC.

2003 LONG-TERM INCENTIVES PLAN

AWARD AGREEMENT

UNRESTRICTED STOCK TERMS AND CONDITIONS

In accordance with a determination of the Board of Directors of Mindspeed Technologies, Inc.
(the “Company”), you have been awarded Unrestricted Stock pursuant to the Company’s 2003 Long-Term
Incentives Plan (the “Plan”). Capitalized terms used herein but not otherwise defined shall have
the meanings assigned to such terms in the Plan.

The Award has been granted to you upon the following terms and conditions:

	1.	 	Earning of Unrestricted Stock

You shall be deemed to have earned the Unrestricted Stock subject to this Agreement on
the earlier of:

	 	(i)	 	the satisfaction of the vesting provisions as established in your Grant
Letter (as defined in Section 8); or
	 
	 	(ii)	 	your death or Disability (as defined in Section 8);

in each case prior to an event of forfeiture (as described in Section 4).

	2.	 	Rights as Shareholder

You will have no rights as a shareholder with respect to any Unrestricted Stock unless
and until the Award has vested in accordance with Section 1 and the Unrestricted Stock has
been delivered to you pursuant to Section 3. No dividends or dividend equivalents will be
paid by the Company with respect to the Stock underlying the Award.

	3.	 	Delivery of Earned Unrestricted Stock

As promptly as practicable after you shall have been deemed to have earned the
Unrestricted Stock in accordance with Section 1, and in no event later than the date that
is two and one-half months after the end of the calendar year in which the Unrestricted
Stock is earned, the Company shall deliver to you (or in the event of your death, to your
estate or any person who acquires your interest in the Award by bequest or inheritance) the
Unrestricted Stock.

 

1

 

	4.	 	Forfeiture of Unearned Unrestricted Stock 

Notwithstanding any other provision of this Agreement, (i) if at any time it shall
become impossible for you to earn any of the Unrestricted Stock in accordance with this
Agreement; or (ii) unless determined otherwise by the Committee, in the event of a
Termination of Employment (as defined below), all unearned Unrestricted Stock, shall be
forfeited, and you shall have no further rights of any kind or nature with respect thereto.
For purposes of this Section, “Termination of Employment” shall mean your termination of
your employment as an employee of the Company for any reason, or the Company terminating
your employment for Cause (as defined in Section 8), provided that: (i) death; (ii)
Disability; (iii) a transfer from the Company to a Subsidiary or affiliate of the Company,
whether or not incorporated, or vice versa, or from one Subsidiary or affiliate of the
Company to another; and (iv) a leave of absence, duly authorized in writing by the Company,
shall not be deemed a Termination of Employment.

	5.	 	Transferability

The Award is not 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 this Agreement, “immediate family”
shall mean your spouse and natural, adopted or step-children and grandchildren.
Notwithstanding any transfer of the Award or portion thereof, the transferred Award shall
continue to be subject to the Plan and this Agreement’s terms and conditions as were
applicable to you immediately prior to the transfer, as if the Award had not been
transferred.

	6.	 	Withholding

The Company shall have the right, in connection with the vesting of the Unrestricted
Stock subject to this Agreement: (i) to deduct from any payment otherwise due by the
Company to you or any other person receiving delivery of the Stock underlying the Award an
amount equal to the taxes required to be withheld by law with respect to such delivery;
(ii) to require you or any other person receiving such delivery to pay to it an amount
sufficient to provide for any such taxes so required to be withheld; or (iii) to sell such
number of the shares of Unrestricted Stock as may be necessary so that the net proceeds of
such sale shall be an amount sufficient to provide for any such taxes so required to be
withheld.

	7.	 	Applicable Law

This Agreement and the Company’s obligation to deliver Unrestricted Stock shall be
governed by the State of Delaware, without regard to its conflicts of laws principles, and
the Federal laws of the United States.

 

2

 

	8.	 	Definitions

	 	(i)	 	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.
	 
	 	(ii)	 	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.
	 
	 	(iii)	 	Grant Letter: The letter from the Company granting the Award to the
Employee.

 

3

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