Document:

Exhibit 10.1

OMNICOM GROUP INC.

  SENIOR EXECUTIVE RESTRICTIVE COVENANT AND RETENTION PLAN

As Amended and Restated on May 19, 2009

ARTICLE I

PREAMBLE

     1.1 The purpose of this Senior Executive Restrictive Covenant and Retention Plan (the “Plan”) is to secure non-competition, non-solicitation, non-disparagement and consulting agreements with Executive Officers
for a significant period of time, and strengthen the retention aspect of Executive Officers’ total compensation.

     1.2 This Plan may be amended at any time and from time to time by the Committee to comply with the requirements of Section 409A of the Internal Revenue Code (“Section 409A”), and regulations and
interpretations issued thereunder. Notwithstanding Section 10.1 of the Plan, any such amendment may be made without the consent of any Participant or Beneficiary, regardless of whether such amendment adversely affects any benefits or rights of a
Participant or Beneficiary arising under the terms of the Plan.

     1.3 This Plan became effective as of December 15, 2006, and was previously amended on December 4, 2008.

ARTICLE II

DEFINITIONS

     The following terms shall have the meaning set forth below:

     2.1 “Annual Cap” means $1,250,000 for the first payment to any Participant; provided, however, that the Annual Cap shall be adjusted annually (beginning with the second annual payment to the Participant)
by the most recent Cost-of-Living Adjustment used by the United States Social Security Administration. Notwithstanding anything else to the contrary, the Annual Cap shall not be increased by more than 2.5% per calendar year.

     2.2 “Beneficiary” means any person, persons, entity or entities designated in writing by the Participant to the Company to receive payment, if any, to be made hereunder following the death of the Participant,
and in the absence of such designation, means (i) the Participant’s surviving spouse, while living, and (ii) if there be no surviving spouse or upon the death of the surviving spouse, then to the estate of the Participant.

     2.3 “Board” means the Board of Directors of the Company.

     2.4 “Cause” means a termination of employment hereunder upon:

	           	
(i)              	
the Participant’s having been convicted of, or having entered a plea bargain or settlement admitting guilt for any felony where, as a result of such felony, the continued employment of the Participant would have a material adverse impact on the
Company; provided, that, the Participant shall not be deemed    
	 

	           	 	
to have been convicted of a felony until the felony conviction becomes final after the exhaustion of all appeals related to the conviction, or in the absence of an appeal, the exhaustion of all applicable appeal periods related to the
conviction;     
	 
	 	
(ii)             	
the Participant’s having been the subject of any order, judicial or administrative, obtained or issued by the Securities and Exchange Commission, for any securities violation involving a material and willful act of fraud; provided, that, the
Participant shall not be deemed to have been the subject of any such order obtained or issued by the Securities and Exchange Commission until the order becomes final after the exhaustion of all appeals related to the order, or in the absence of an
appeal, the exhaustion of all applicable appeal periods related to the order; or        
	 
	 	
(iii)            	
the Participant’s having been convicted of, or having entered a plea bargain or settlement admitting guilt for, the commission of an act of fraud or embezzlement against the Company that results in material and demonstrable harm to the Company;
provided, that, the Participant shall not be deemed to have been convicted of an act of fraud or embezzlement against the Company until such conviction becomes final after the exhaustion of all appeals related to the conviction, or in the absence of
an appeal, the exhaustion of all applicable appeal periods related to the conviction.   
	 

If the Company or one of its Subsidiaries desires to terminate the Participant’s employment for Cause in accordance herewith, it shall provide the Participant with a notice of termination, and allow the Participant 90 days following the date of
such notice to fully remedy, cure or rectify, if possible, the situation giving rise to the allegations of Cause. The cessation of employment of the Participant shall not be deemed to be for Cause unless and until there shall have been delivered to
the Participant a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of the board of directors of the Company (excluding the Participant, if the Participant is a member of such board) at a meeting of
such board (after reasonable notice is provided to the Participant and the Participant is given an opportunity, together with counsel for the Participant, to be heard before such board), finding that, in the good faith opinion of the board, the
Participant is guilty of the conduct described above, and specifying the particulars thereof in detail.

     2.5 “Committee” means the Compensation Committee of the Board, or if there should be no Compensation Committee, means a committee of not less than three members of the Board none of whom shall, while serving
as a member of the Committee, be eligible to receive a benefit under the Plan from the Company.

     2.6 “Company” means Omnicom Group Inc., a New York corporation.

     2.7 “Disability” means the inability of the Participant, by reason of physical condition, mental illness or accident, to perform substantially all of the duties of the position at which he or she was employed
by the Employer when such disability commenced. The Committee shall make all determinations as to “Disability,” after a hearing at which the

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Participant shall be entitled to be present with counsel of his or her choice and be heard by the Committee, and the determination by the Committee shall be final and conclusive.

     2.8 “Employee” means any person who is a full-time employee of an Employer.

     2.9 “Employer” means the Company or a Subsidiary.

     2.10 “Executive Officer” means, as determined by the Board on an annual basis, the Company’s president, any vice president of the Company in charge of a principal business unit, division or function (such
as sales, administration or finance), any other officer who performs a policy making function or any other person who performs similar policy making functions for the Company. Executive Officers of Subsidiaries may be deemed Executive Officers of
the Company if they perform such policy making functions for the Company.

     2.11 “Employer Group” means the Company and all Subsidiaries.

     2.12 “Final Average Pay” means the Participant’s average annual Pay determined using the highest three (3) years of Pay during the Employee’s employment with the Employer, unless otherwise defined by
the Participant’s Senior Executive Restrictive Covenant and Retention Plan Agreement. For this purpose, only full years of employment will be taken into account and partial years of employment will be disregarded.

     2.13 “Participant” means a person who participates in the Plan in accordance with Article V below.

     2.14 “Plan” means this Omnicom Group Inc. Senior Executive Restrictive Covenant and Retention Plan, as may be amended from time to time.

     2.15 “Pay” means the base salary plus bonus and other incentive compensation earned in respect of any calendar year by the Participant, whether or not paid to the Participant or waived or deferred by the
Participant, excluding all other forms of compensation, such as severance pay, contributions under benefit plans, and the compensatory elements of stock awards.

     2.16 “Percentage” means 5% plus 2% per Year of Executive Service, unless otherwise defined by the Participant’s Senior Executive Restrictive Covenant and Retention Plan Agreement. Unless otherwise limited
by the Participant’s Senior Executive Restrictive Covenant and Retention Plan Agreement, in no event may the Percentage exceed 35%.

     2.17 “Separation from Service” means a Participant’s “separation from service” with the Employer Group as such term is defined in Treasury Regulation Section 1.409A -1(h) and any successor
provision thereto.

     2.18 “Senior Executive Restrictive Covenant and Retention Plan Agreement” means a written agreement containing terms and conditions that are deemed appropriate by the Committee.

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     2.19 “Subsidiary” means any company in which the Company holds, directly or indirectly, 50% or more of its outstanding voting stock.

     2.20 “Vested Participant” means a Participant who has completed seven Years of Service.

     2.21 “Year of Executive Service” means each complete or partial Year of Service during which the Participant was an Executive Officer.

     2.22 “Year of Service” means each consecutive period of 365 days the Participant is in the continuous employ of a member or members of the Employer Group. For purposes of this Section, “continuous employ
of a member or members of the Employer Group” means consecutive employment by members of the Employer Group without interruption by reason of self-employment or employment by a third party employer, except as provided in Section 2.19(b) of the
Plan.

     The Participant shall be in the employ of the Employer regardless of absences by reason of:

          (a) sick leave, vacation leave, or other special leave approved by the Employer which does not exceed six months, provided the Participant returns to work for the Employer not later than the expiration date of the
authorized leave of absence; and

          (b) time spent in the service of others at the request of, or with the approval of, the Employer, provided the Participant returns to work for the Employer within fifteen (15) days following cessation of work for such
other party.

ARTICLE III

  COMPANY’S PAYMENT OBLIGATION CONDITIONAL ON PARTICIPANT 

  REFRAINING FROM COMPETITIVE AND OTHER ACTIVITIES AFTER

  SEVERANCE OF EMPLOYMENT

     3.1 It is a condition of the Company’s obligation to make payments hereunder that from the date of the Participant’s employment termination described in Section 6.1 of the Plan that shall have given rise to
the obligation to pay and until the close of the last calendar year in respect of which the Participant is entitled to receive payments hereunder:

          (a) that the Participant shall not, directly or indirectly, engage in, nor become employed as an employee or retained as a consultant by any of the top 15 marketing services organizations as reported most recently by
Advertising Age (determined at the time of entering into the Senior Executive Restrictive Covenant and Retention Plan Agreement), or any of such marketing organizations’ subsidiaries in the United States or any other country (“Protected
Business”); provided, that, nothing shall prohibit the Participant from, directly or indirectly, engaging in, or becoming employed as an employee or retained as a consultant, as described in Article IV or otherwise, by a member of the Employer
Group;

          (b) that the Participant shall not employ (including to retain, engage, or conduct business with) or attempt to employ (other than on behalf of a member of the Employer

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Group) or assist anyone else to employ any person who is at the time of the alleged prohibited conduct, or was at any time during the preceding year, an employee of a member of the Employer Group;

          (c) that the Participant shall not make any oral or written statement to any person or entity which disparages in a material way the business reputation of the Company or any member of the Employer Group or the top 50
clients of the Employer Group; and

          (d) that the Participant shall not willfully engage in any activity which is materially harmful to the interests of the Employer Group.

     In the event that the Committee determines that the Participant has breached any of the provisions of Subsections (a) through (d) above, it shall give the Participant written notice thereof stating in detail the
particular act or failures that constitute such breach and the specific action that the Committee requires the Participant to take to cure such alleged breach. Any such notice must be given within ninety (90) days after the Committee first
determines that such acts or failures constitute a breach. The Committee must give the Participant a reasonable opportunity to cure in all circumstances in which it alleges that the Participant has breached any of the provisions of Subsections (a)
through (d) above. The Participant shall have ninety (90) days after receiving such notice to remedy such breach. The determination of (i) whether a business is in the top 15 marketing services organizations as reported in Advertising Age, (ii)
whether the Participant employed, attempted to employ or assisted anyone else to employ any employee of the Employer Group, (iii) whether the Participant made statements which disparages in a material way, and (iv) whether the Participant willfully
engaged in any activity which is materially harmful, shall be made by the Committee in good faith after a hearing at which the Participant shall be entitled to be present with counsel of his choice and be heard by the Committee, and any such
determination by the Committee shall be final and conclusive.

     3.2 Nothing herein prohibits or restricts the Participant from engaging in the Protected Business in the geographic areas described in Subsection 3.1(a) of the Plan, employing, attempting to employ or assisting anyone
else to employ any employee of a member of the Employer Group, making disparaging statements, or willfully engaging in activity which is harmful to the interests of the Employer Group (collectively “Activities”); provided, however, in the
event the Participant chooses to engage in any of such Activities, the Company’s obligation to make payments hereunder shall forthwith terminate as to payments which might otherwise have become payable to the Participant in respect of the
calendar year in which such Activity occurred and to the Participant or the Beneficiary in respect of all calendar years thereafter, but the Participant shall not be obligated to refund to the Company any payments theretofore paid to Participant
hereunder.

ARTICLE IV

  COMPANY’S PAYMENT OBLIGATION CONDITIONAL ON PARTICIPANT’S 

  AVAILABILITY FOR ADVISORY AND CONSULTATIVE SERVICES AFTER

  SEVERANCE OF EMPLOYMENT

     4.1 It is a further condition of the Company’s obligation to make payments hereunder that from the date of the Participant’s employment termination described in Section 6.1 of the

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Plan that shall have given rise to the obligation to pay and until the close of the last calendar year in respect of which the Participant is entitled to receive payments hereunder, that the Participant, if not physically or mentally disabled,
shall, as an independent contractor and upon not less than thirty (30) days prior written notice from the Company, make his or her services available to the Company as an advisor and consultant with respect to activities of the department or unit of
the Company’s business to which the Participant was last assigned; provided, however, that the Participant shall not be obligated to make his or her services available (i) for more than forty-five (45) business days in the aggregate in any one
calendar year and for more than seven (7) consecutive business days in any one calendar year, and (ii) during the period from December 15 through January 15. Such advisory or consulting services shall be rendered at such times and places as may be
mutually convenient to the Chief Executive Officer of the Company and the Participant. The scheduling of the Participant’s advisory and consulting activities shall take into account his or her other business, family and civic commitments. The
Company shall reimburse the Participant for reasonable traveling, transportation and living expenses necessarily incurred by the Participant while away from his or her regular place of residence in the performance of such advisory and consultative
services for the Company.

     In the event that the Committee determines that the Participant has breached any of the provisions of Section 4.1 above, it shall give the Participant written notice thereof stating in detail the particular act or
failures that constitute such breach and the specific action that the Committee requires the Participant to take to cure such alleged breach. Any such notice must be given within ninety (90) days after the Committee first determines that such acts
or failures constitute a breach. The Committee must give the Participant a reasonable opportunity to cure in all circumstances in which it alleges that the Participant has breached any of the provisions of Section 4.1 above. The Participant shall
have ninety (90) days after receiving such notice to remedy such breach. The determination of whether the Participant has violated any provision of Section 4.1 above shall be made by the Committee in good faith after a hearing at which the
Participant shall be entitled to be present with counsel of his choice and be heard by the Committee, and any such determination by the Committee shall be final and conclusive.

     4.2 In the event the Participant chooses not to render advisory and consultative services to the Company as provided in Section 4.1 of the Plan, the Company’s obligation to make payments hereunder shall forthwith
terminate as to payments which might otherwise have become payable to the Participant in respect of the calendar year in which such event occurred and to the Participant or the Beneficiary in respect of all calendar years thereafter, but the
Participant shall not be obligated to refund to the Company any payments theretofore paid to Participant hereunder.

ARTICLE V

PARTICIPATION

     5.1 The Committee shall select, in its sole discretion, those Employees who are eligible to become Participants in the Plan.

     5.2 An eligible Employee shall become a Participant in the Plan effective upon the Employee executing and returning to the Company’s Secretary a Senior Executive Restrictive Covenant and Retention Plan
Agreement.

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ARTICLE VI

BENEFITS

     6.1 Except as otherwise set forth in the Participant’s Senior Executive Restrictive Covenant and Retention Plan Agreement, in the event the Participant’s employment with the Employer Group terminates for any
reason other than for Cause after the Participant has completed seven Years of Service and the Participant incurs a Separation from Service, then the Company, subject to all the terms and conditions hereof, shall become obligated to pay to the
Participant, or to the Beneficiary if the obligation arises because of the death of the Participant, each year, for fifteen (15) consecutive calendar years commencing in the year determined under Section 6.2 of the Plan, an amount equal to the
lesser of (a) the product obtained by multiplying the Participant’s Final Average Pay by the Percentage; or (b) the Annual Cap (each such annual payment an “Annual Installment Payment”). Each Annual Installment Payment made pursuant
to this Section 6.1 shall be deemed a separate payment under this Plan for all purposes.

     6.2 Except as otherwise set forth in the Participant’s Senior Executive Restrictive Covenant and Retention Plan Agreement, the benefits to be paid under Section 6.1 of the Plan, if any, shall commence upon the
later of (a) the Participant’s attainment of age 55 (subject to Section 6.3 of the Plan), or (b) the calendar year following the calendar year in which the Participant dies or incurs a Separation from Service; provided, however, that the
following exceptions apply:

  
     (i) If the Participant incurs a Separation from Service because of his or her Disability, then the Participant’s benefits shall commence in the calendar year following the calendar year in which such Separation
from Service occurs;

  
     (ii) If the Participant dies prior to receiving the first payment of his or her benefits, then 100% of the benefits that would have been paid to the Participant had the Participant lived to receive all payments shall be
paid to the Beneficiary in annual payments over the total number of calendar years as to which the Company would have been obligated to make payments hereunder to the Participant; and

  
     (iii) If the Participant dies after receiving the first payment of his or her benefits, but before the Participant has received all of the payments in respect of the total number of calendar years as to which the
Company is obligated to make payments hereunder (“Payment Period”), the Company shall thereafter be obligated to make annual payments to the Beneficiary during the remainder of the Payment Period, equal to 100% of the amount which the
Company would have been obligated to pay to the Participant had the Participant lived to receive all payments.

  
     (iv) Notwithstanding any provision of the Plan to the contrary, no portion of the Participant’s benefits shall be provided to the Participant prior to the earlier of (i) the expiration of the six-month period
measured from the date of the Participant’s Separation from Service or (ii) the date of the Participant’s death. Upon the earlier of such dates, all payments deferred pursuant to this Section 6.2(iv) shall be paid in a lump sum to the
Participant. Thereafter, payments will resume in accordance with this Plan.

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     6.3 Payments hereunder as a result of the Participant attaining age 55 shall commence as soon as practicable as determined by the Company but no later than the later of (i) ninety (90) days following the
Participant’s attainment of age 55, and (ii) the fifteenth day of the third calendar month following the Participant’s attainment of age 55 and subsequent payments shall be made in each calendar year of payment following the
Participant’s attainment of age 55 during the first ninety (90) days of the subject calendar year. Except as otherwise provided herein, all payments under this Article shall be made by the Company in each calendar year of payment during the
first ninety (90) days of the subject calendar year.

     6.4 The Company may, at any time and from time to time, seek to fund, in whole or in part, its obligation under the Plan by applying for insurance on the life of a Participant. Such Participant shall, if requested in
writing by the Company, undergo a physical examination for such purpose by medical examiners designated by the Company, and if the Participant should refuse to undergo such physical examination the Company shall have the right to terminate its
obligation under the Plan by giving written notice of such termination to the Participant.

     6.5 Upon becoming a Participant in this Plan (or with respect to a Participant who was a Participant as of December 31, 2008 (the “Surrender Date”), on the Surrender Date), each Participant shall and does
surrender any rights he or she has to receive payments to be made following cessation of such Participant’s employment to the Participant, Beneficiary or other designee of the Participant pursuant to any defined benefit pension plan sponsored
by one or more members of the Employer Group regardless of whether such plan is qualified under Section 401(a) of the Internal Revenue Code (“Post-Employment Payments”). For purposes hereof, Post-Employment Payments shall not include any
other type of payment including payments under (i) a profit-sharing or savings plan which is qualified under Section 401(a) of the Internal Revenue Code, (ii) a benefit plan, other than a defined benefit pension plan, for the payor’s employees
generally (“Employee Benefit Plan”), (iii) a plan, other than a defined benefit pension plan, for the payor’s executive officers approved by the Company that augments a benefit provided for in an Employee Benefit Plan, (iv) an
agreement financed, in whole or in part, by the Participant to the extent the payments are attributable to the financing provided by the Participant, and (v) social security benefits.

     6.6 Notwithstanding anything to contrary in this Plan, nothing in this Plan is intended to result in a change in the time or form of payment of any Post-Employment Payments that would be deemed to be “non-qualified
deferred compensation” within the meaning of Section 409A (such Post-Employment Payments referred to herein as “Non-qualified Post-Employment Payments”). If a Participant would be entitled to receive any Non-qualified Post-Employment
Payments (ignoring the effect of the first sentence of Section 6.5), then (i) with respect to such Participant, the first sentence of Section 6.5 shall not apply to any Non-qualified Post-Employment Payments and (ii) the payments to which such
Participant would otherwise be entitled under this Plan shall be reduced by an amount equal to the value of such Non-qualified Post-Employment Payments (as determined by the Company), which reduction shall be applied pro-rata to each Annual
Installment Payment. This Section 6.6 shall not apply to any Participant that is a Vested Participant as of December 31, 2008.

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     For purposes of clarifying the provisions of the Plan, including Article VI, the Participant shall not be deemed an Employee solely by serving as a non-executive member or Chairman of the Board (or any similar committee
of any Employer).

ARTICLE VII

  DESIGNATION AND IDENTITY OF BENEFICIARY

     7.1 A Participant may designate a Beneficiary by signing, dating and filing with the Secretary of the Company a written instrument setting forth the name(s) and address(es) of the Beneficiary, and if the Beneficiary be
more than one person or entity, describing the allocation of the payment benefit among them. A Participant may change his or her designation of a Beneficiary and thereby revoke a prior designation of a Beneficiary at any time and from time to time
by filing a new such written instrument with the Secretary. The Beneficiary named in the last unrevoked designation of Beneficiary so filed by the Participant prior to his or her death shall be the Beneficiary for purposes of the Plan. In the
absence of a designation of Beneficiary by the Participant, or in the event the last written designation of Beneficiary on file with the Secretary has been revoked by the Participant, the Beneficiary shall be as described in Section 2.1 of the
Plan.

     7.2 It is a condition of the Company’s obligation to make payments to the Beneficiary hereunder that (a) in making payments the Company may, in its sole and absolute discretion, rely upon signed, written
declarations, verifying the identity of a Beneficiary filed with the Secretary of the Company by a person or entity claiming to be such Beneficiary; (b) any payment made by the Company in good faith to any claimant, whether or not such declarations
shall have been filed with the Company, shall pro tanto, discharge any obligation the Company might otherwise have to make payment to any and all other actual or possible claimants; (c) any person or entity claiming to be entitled to receive
payments hereunder following the death of the Participant shall have recourse only against the person or entity to whom the Company shall have made payment in good faith; and (d) in the event the Company, on advice of counsel, delays payment of any
sums becoming due to a Beneficiary by reason of a dispute as to the legitimacy of the claim of such Beneficiary, no interest, penalty or damage shall accrue, become payable by or be assessed against the Company by reason of such delay in
payment.

ARTICLE VIII

ADMINISTRATION

     8.1 The Plan shall be administered by the Committee. A majority vote of the Committee members shall control any decision of the Committee. The Committee shall have all powers necessary to administer the Plan, including
the power to:

          (a) make and enforce such rules and regulations as it deems necessary or proper for the administration of the Plan;

          (b) interpret the Plan, decide all questions concerning the Plan (whether of fact or otherwise) and determine the eligibility of any person to receive payments hereunder, each in its sole discretion; any such
interpretation or determination to be reviewed under an abuse of discretion standard;

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          (c) appoint such agents, counsel, accountants, consultants, and other persons as may be required to assist in administering the Plan; and

          (d) allocate and delegate its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities under the Plan, any such allocation, delegation or designation to be in writing.

     8.2 The decision or action of the Committee 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, conclusive and binding upon all persons having any interest in the Plan.

     8.3 The Company shall indemnify and hold harmless the members of the Committee and the Board, and any of its delegates, against any and all claims, loss, damage, expense or liability arising from any action or failure
to act with respect to this Plan on account of such member’s service on the Committee or the Board, or the service of such delegate, except where (i) his or her acts were committed in bad faith or were the result of his or her active and
deliberate dishonesty and were material to such action; or (ii) he or she personally gained in fact a financial profit or other advantage to which he or she was not legally entitled.

ARTICLE IX

CLAIMS PROCEDURE

     9.1 If a Participant or Beneficiary (“Claimant”) does not receive a benefit to which the Claimant believes he or she is entitled, the Claimant may file a written claim with the Committee. The Claimant’s
claim will be processed by the Committee within ninety (90) days (in special circumstances, this period may be extended for an additional ninety (90) days by written notice to the Claimant). If the Claimant’s claim is denied, he or she will be
notified in writing, and such notification will include the reasons for the denial, specific references to pertinent Plan provisions, a description of any additional material or information necessary for the Claimant to perfect the claim, together
with an explanation of why the material or information is necessary, and a description of the Plan’s claim review procedure, described below, including a statement of the Claimant’s right to bring a civil action under the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”) Section 502(a) following an adverse benefit determination on review.

     9.2 If the Claimant is dissatisfied with the Committee’s determination, the Claimant may request, in writing, a review by the Board of the Committee’s determination. The Claimant also has the right to review
and obtain copies of relevant documents and to submit issues and comments in writing. The Claimant must request a claim review not later than sixty (60) days after the date the Claimant receives the Committee’s notification. The Board’s
review shall take into account all comments, documents, records, and other information submitted by the Claimant related to the claim, without regard to whether such information was submitted or considered by the Committee.

     9.3 Within sixty (60) days of receipt of a request for review of the disputed claim (in special circumstances, 120 days, by written notice to the Claimant), the Board will review the

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claim and advise the Claimant, in writing, of its determination. The writing will include the reasons for the Board’s decision, specific references to pertinent Plan provisions, a statement that the Claimant is entitled to receive reasonable
access to and copies of all documents, records and other information relevant to the claim, and a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). The Board’s decision shall be final and
conclusive.

ARTICLE X

  TERMINATION, SUSPENSION OR AMENDMENT

     10.1 The Committee may, in its sole discretion, terminate or suspend the Plan at any time, in whole or in part only in a manner that complies with Treasury Regulation § 1.409A -3(j)(4)(ix). The Committee may, in
its sole discretion, amend the Plan or a Participant’s Senior Executive Restrictive Covenant and Retention Plan Agreement at any time, and from time to time, for any reason. Any amendment, termination or suspension shall be in writing. Except
as provided in Section 1.2 of the Plan, no amendment, termination, or suspension may adversely affect the benefits or rights of a Participant arising under the terms of the Plan or a Senior Executive Restrictive Covenant and Retention Plan Agreement
in a material manner without the consent of such Participant.

ARTICLE XI

MISCELLANEOUS

     11.1 This Plan is an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of management or highly-compensated employees within the meaning of Sections 201, 301, and 401 of
ERISA, and therefore is exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA.

     11.2 With respect to rights and benefits derived from the existence of the Plan, Participants shall be unsecured general creditors of the Company, with no secured or preferential right to any assets of the Company or
any other party for payment of benefits under this Plan. Any property held by the Company for the purpose of generating the cash flow for benefit payments shall remain its general, unpledged and unrestricted assets.

     11.3 The Company shall be responsible for the payment of all benefits provided under the Plan. At its discretion, the Company may establish one or more trusts, with such trustees as the Board may approve, for the
purpose of providing for the payment of such benefits. Although such a trust shall be irrevocable, its assets shall be held for payment of all the Company’s general creditors in the event of insolvency. To the extent any benefits provided under
the Plan are paid from any such trust, the Company shall have no further obligation to pay them. If not paid from the trust, such benefits shall remain the obligation of the Company.

     11.4 The Company shall withhold from payments hereunder any taxes required to be withheld from such payments under applicable local, state or federal law. 11.5 The right of a Participant or Beneficiary to receive
payments hereunder is personal, non-assignable and non-transferable by operation of law or otherwise. The word “otherwise” in the preceding sentence shall include, without limitation, any execution, levy, garnishment, attachment or seizure
by any other legal process. If at the time the Company is to make a payment to a Participant or

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Beneficiary hereunder the Participant or Beneficiary is not entitled to receive such payment by reason of non-compliance with the provisions of this Section 11.5, the obligation of the Company to make such payment shall forthwith terminate.

     11.5 Any payment to be made by the Company to a person under the age of 21 years may be made to such person or to a guardian of the property of such person or to a parent of such person as the Company may, in its sole
and absolute discretion, determine. The Company may delay such payment until the Company has received notice of the appointment and qualification of a guardian of the property of such person, and no interest, penalty or damage shall accrue, become
payable by or be assessed against the Company by reason of such delay in payment.

     11.6 Nothing herein contained shall be deemed to give the Participant the right to remain in the employ of the Employer or to interfere with the right of the Employer to terminate the Participant’s employment at
any time, nor to give the Employer the right to require the Participant to remain in its employ or to interfere with the Participant’s right to terminate employment at any time.

     11.7 Except as preempted by ERISA, the provisions of this Plan shall be construed and interpreted in accordance with the laws of the State of New York, and is subject to all applicable federal, state and municipal laws
and regulations now or hereafter in force.

     11.8 If any provision of this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, and this Plan shall be construed and enforced as if such
illegal and invalid provision had never been inserted herein.

     11.9 The failure of any party to insist upon strict adherence to any term of the Plan on any occasion shall not be considered a waiver of any right hereunder, nor shall it deprive that party of the right thereafter to
insist upon strict adherence to that term or any other term of the Plan.

     11.10 The provisions of this Plan shall bind and inure to the benefit of the Company and its successors and assigns, and to the Participants and their representatives, heirs and estate. The term successors as used
herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of the Company, and successors of any such corporation or
other business entity.

     11.11 It is intended that this Plan shall be limited, construed and interpreted in accordance with Section 409A of the Code. It is also intended that to the extent that any payment or benefit described hereunder is
subject to Section 409A of the Code, it shall be paid in a manner that will comply with Section 409A of the Code, including guidance issued by the Secretary of the Treasury and the Internal Revenue Service with respect thereto. No provision in this
Plan shall be interpreted or construed to directly or indirectly transfer any liability for a failure to comply with Section 409A of the Code from a Participant or other individual to the Company, or any other individual or entity affiliated with
the Company.

12EXHIBIT 10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RF MICRO DEVICES, INC.

2006 DIRECTORS STOCK OPTION PLAN

(As Amended and Restated Effective May 7, 2009)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RF MICRO DEVICES, INC.

2006 DIRECTORS STOCK OPTION PLAN

(As Amended and Restated Effective May 7, 2009)

1.                 
Definitions.

In addition to other terms defined herein, the following
terms shall have the meanings given below:

(a)               
Administrator means the Board, and, upon its delegation of
all or part of its authority to administer the Plan to the Committee, the
Committee.

(b)              
Affiliate means any Parent or Subsidiary of the
Corporation, and also includes any other business entity which is controlled
by, under common control with or controls the Corporation; provided, however,
that the term "Affiliate" shall be construed in a manner in accordance
with the registration provisions of applicable federal securities laws and as
permitted under Code Section 409A.

(c)               
Annual Option means an Option which may be granted on an
annual basis to a Nonemployee Director of the Corporation as provided in Section 7.

(d)              
Annual RSU means an RSU which may be granted to a
Nonemployee Director on an annual basis under the terms of the Director
Compensation Plan and 2003 Plan (or other applicable stock plan).

(e)               
Board or Board of Directors means the Board of
Directors of the Corporation.

(f)                
Cause shall mean a Participant's termination of service as
a Director resulting from the Participant's termination for "Cause"
due to the Participant's (i) dishonesty, (ii) refusal to perform his duties for
the Corporation, (iii) engaging in conduct that could be materially damaging to
the Corporation without a reasonable good faith belief that such conduct was in
the best interest of the Corporation, or (iv) termination for any other reason
which the Administrator in its sole discretion determines constitutes a
termination for "Cause."

(g)              
Change of Control:

(i)                
General:  Except as may be otherwise provided in an individual
Option Agreement or as may be otherwise required in order to comply with Code Section 409A, a Change of Control shall be deemed to have occurred on the earliest of the following dates:

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

 

 

 

 

 

 

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

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

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

(ii)              
Definition Applicable to Options subject to Code Section 409A: Notwithstanding the preceding provisions of Section 1(g)(i), in the event that any Options granted under the Plan are deemed to be deferred compensation subject to the provisions of Code Section 409A, then distributions related to such Options pursuant to a change of control may be permitted, in the Administrator's discretion, upon the occurrence of one or more of the following events (as they are defined and interpreted under Code Section 409A): (A) a change in the ownership of the Corporation, (B) a change in effective control of the Corporation, or (C) a change in the ownership of a substantial portion of the assets of the Corporation.

(h)              
Code means the Internal Revenue Code of 1986, as amended.  Any reference herein to a specific Code section shall be deemed to include all related regulations or other guidance with respect to such Code section.

(i)                
Committee means the Compensation Committee of the Board
which may be appointed to administer the Plan.

(j)                
Common Stock means the common stock of RF Micro Devices,
Inc., no par value.

(k)              
Corporation means RF Micro Devices, Inc., a North Carolina corporation, together with any successor thereto.

(l)                
Director means a member of the Board.

(m)            
Director Compensation Plan means the RF Micro Devices,
Inc. Director Compensation Plan, as it may be amended and/or restated from time
to time.         

(n)              
Effective Date means the effective date of the Plan, as
provided in Section 4.

	
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(o)              
Employee means any person who is an employee of the
Corporation or any Affiliate (including entities which become Affiliates after
the Effective Date of the Plan).  For this purpose, an individual shall be
considered to be an Employee only if there exists between the individual and
the Corporation or an Affiliate the legal and bona fide relationship of
employer and employee.

(p)              
Exchange Act means the Securities Exchange Act of 1934, as
amended.

(q)              
Fair Market Value per share of the Common Stock shall be
established in good faith by the Administrator and, unless otherwise determined
by the Administrator, the Fair Market Value shall be determined in accordance
with the following provisions: (A) if the shares of Common Stock are listed for
trading on the New York Stock Exchange, the American Stock Exchange or the
NASDAQ Stock Market, LLC ("NASDAQ Stock Market"), the Fair Market
Value shall be the closing sales price per share of the shares on the New York
Stock Exchange, the American Stock Exchange or the NASDAQ Stock Market (as
applicable) on the date immediately preceding the date an Option is granted or
other determination is made (such date of determination being referred to
herein as a "valuation date"), or, if there is no transaction
on such date, then on the trading date nearest preceding the valuation date for
which closing price information is available, and, provided further, if the
shares are not listed for trading on the New York Stock Exchange, the American
Stock Exchange or the NASDAQ Stock Market, the Fair Market Value shall be the
average between the highest bid and lowest asked prices for such stock on the
date immediately or nearest preceding the valuation date as reported on the OTC
Bulletin Board service, Pink OTC Markets (commonly known as the "pink
sheets") or by a comparable inter-dealer quotation service; or (B) if the
shares of Common Stock are not listed or reported in any of the foregoing, then
the Fair Market Value shall be determined by the Administrator based on such
valuation measures or other factors as it deems appropriate.  Notwithstanding
the foregoing, the Fair Market Value shall be determined in accordance with Code Section 409A if and  to the extent required.

(r)                
Initial Option means an Option which may be granted to a Nonemployee
Director upon initial election or appointment to the Board, as provided in Section 7.

(s)               
Initial RSU means an RSU which may be granted to a
Nonemployee Director upon initial election or appointment to the Board, as
provided under the Director Compensation Plan and the 2003 Plan (or other
applicable stock plan).

(t)                
Nonemployee Director means a Director of the Board who is
not an Employee of the Corporation or an Affiliate and who is eligible to
receive an Option pursuant to Section 6.

(u)              
Nonqualified Option means an Option granted under Section 7
that is not intended to qualify as an incentive stock option under Code Section 422.

(v)              
Option means a stock option granted to a Nonemployee
Director under Section 7 that entitles the holder to purchase from
the Corporation a stated number of shares of Common Stock, subject to the terms
of the Plan and applicable Option Agreement.  An Option may be in the form of
an Annual Option, an Initial Option or a Supplemental Option, as provided in Section
7.

(w)             
Option Agreement means an agreement (which may be in
written or electronic form, in the Administrator's discretion, and which
includes any amendment or supplement thereto) between the Corporation and a
Participant specifying the terms, conditions and restrictions of an Option
granted to the Participant.  An Option Agreement may also state such other
terms, conditions and restrictions, including but not limited to terms,
conditions and restrictions applicable to shares or any other benefit
underlying an Option, as may be established by the Administrator.

(x)              
Option Period means the term of an Option, as provided in Section 7(f).

	
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(y)              
Option Price means the price at which an Option may be
exercised, as provided in Section 7(e).

(z)               
Parent means a "parent corporation," whether now
or hereafter existing, as defined in Section 424(e) of the Code.

(aa)           
Participant means a Nonemployee Director who has been
granted an Option under the Plan.

(bb)          
Plan means the RF Micro Devices, Inc. 2006 Directors Stock
Option Plan, as amended and restated effective May 7, 2009, and as it may be
hereafter amended and/or restated.

(cc)           
Prior Plan means the Nonemployee Directors' Stock Option
Plan of RF Micro Devices, Inc., as amended and restated.

(dd)          
RSU means a restricted stock unit which may be granted to
a Nonemployee Director in accordance with the terms of the Director
Compensation Plan and the 2003 Plan (or other applicable stock incentive plan). 
Such RSUs may be Initial RSUs, Annual RSUs and/or Supplemental RSUs.  RSUs
shall not be granted under this Plan.

(ee)           
Securities Act means the Securities Act of 1933, as
amended.

(ff)             
Subsidiary means a "subsidiary corporation,"
whether now or hereafter existing, as defined in Section 424(f) of the
Code.

(gg)          
Supplemental Option means a supplemental Option which may
be granted to a Nonemployee Director pursuant to Section 7(d) herein. 

(hh)          
Supplemental RSU means a supplemental RSU which may be
granted to a Nonemployee Director under the terms of the Director Compensation
Plan and the 2003 Plan (or other applicable stock plan).

(ii)              
Termination Date means the date of termination of a
Participant's service on the Board for any reason, as determined by the
Administrator in its discretion.

(jj)              
2003 Plan means the 2003 Stock Incentive Plan of RF Micro
Devices, as amended June 1, 2006, and as it may be further amended and/or
restated. 

2.                 
Purpose.

	
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The purposes of the Plan are to compensate
Nonemployee Directors for their service on the Board and encourage and enable
such Directors to acquire or to increase their holdings of Common Stock in
order to promote a closer identification of their interests with those of the
Corporation and its shareholders, thereby further stimulating their efforts to
enhance the efficiency, soundness, profitability, growth and shareholder value
of the Corporation.  The Plan is also intended to further the efforts of the
Corporation to attract and retain qualified Nonemployee Directors.  These
purposes will be carried out through the granting of Options to Nonemployee
Directors.  Such Options include (i) Initial Options granted to Nonemployee
Directors upon their initial election or appointment to the Board (as defined
above, "Initial Options"); (ii) Options granted to Nonemployee
Directors on an annual basis (as defined above, "Annual Options");
and (iii) Options which may be granted to Nonemployee Directors on a
supplemental basis (as defined above, "Supplemental Options").

3.                 
Administration of the Plan.

(a)               
The Plan shall be administered by the Committee unless the Board
elects to assume administration of the Plan in whole or in part. Unless the
Board determines otherwise, the Committee shall be comprised solely of two or
more "non-employee directors," as such term is defined in Rule 16b-3
under the Exchange Act, or as may otherwise be permitted under Rule 16b-3.  For
the purposes of the Plan, the term "Administrator" shall refer to the
Board and, upon its delegation to the Committee of all or part of its authority
to administer the Plan, to the Committee.

(b)              
Subject to the provisions of the Plan, the Administrator shall
have full and final authority in its discretion to take any action with respect
to the Plan including, without limitation, the authority (i) to determine
all matters relating to Options, (ii) to prescribe the form or forms of
Option Agreements evidencing any Options granted under the Plan; (iii) to
establish, amend and rescind rules and regulations for the administration of
the Plan; and (iv) to construe and interpret the Plan, Options and Option
Agreements made under the Plan, to interpret rules and regulations for
administering the Plan and to make all other determinations deemed necessary or
advisable for administering the Plan.  Except to the extent otherwise required
under Code Section 409A, (i) the Administrator shall have the authority to accelerate the date that any Option which was not otherwise exercisable, vested or earned shall become exercisable, vested or earned in whole or in part without any obligation to accelerate
such date with respect to any other Option granted to any recipient; and (ii)
the Administrator also may modify or extend the terms and conditions for
exercise or vesting of an Option. In addition to action by meeting in
accordance with applicable laws, any action of the Administrator with respect
to the Plan may be taken by a written instrument signed by all of the members
of the Board or Committee, as appropriate, and any such action so taken by
written consent shall be as fully effective as if it had been taken by a
majority of the members at a meeting duly held and called.  No member of the
Board or Committee, as applicable, shall be liable while acting as
Administrator for any action or determination made in good faith with respect
to the Plan, an Option or an Option Agreement.  The members of the Board and
the Committee, as applicable, shall be entitled to indemnification and
reimbursement in the manner provided in the Corporation's articles of
incorporation and bylaws and/or under applicable law.

4.                 
Effective Date; Plan Term

The Effective Date of the Plan shall be July
31, 2006.  The Plan was amended and restated effective May 7, 2009.  Options
may be granted under the Plan on and after the Effective Date, but not after
July 30, 2016.  Options that are outstanding at the end of the Plan term
(or such earlier termination date as may be established by the Board pursuant
to Section 9(a)) shall continue in accordance with their terms, unless
otherwise provided in the Plan or an Option Agreement.

5.                 
Shares of Stock Subject to the Plan; Option Limitations

	
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(a)               
Shares of Stock Subject to the Plan:  Subject to
adjustments as provided in Section 5(c), the aggregate number of shares of
Common Stock that may be issued pursuant to Options granted under the Plan
shall not exceed the sum of (i) 1,000,000 shares, plus (ii) any
shares of Common Stock remaining available for issuance under the Prior Plan as
of the Effective Date of the Plan, plus (iii) any shares subject to an
option granted under the Prior Plan, which option at any time is forfeited,
cancelled, terminated, expires or lapses for any reason without the issuance of
shares pursuant to the option.  Shares delivered under the Plan shall be
authorized but unissued shares or shares purchased on the open market or by
private purchase.  The Corporation hereby reserves sufficient authorized shares
of Common Stock to meet the grant of Options hereunder.

(b)              
Shares Not Subject to Limitations: The following will not
be applied to the share limitations of Section 5(a) above: 
(i) dividends, including dividends paid in shares, or dividend equivalents
paid in cash in connection with outstanding Options; (ii) any shares
subject to an Option under the Plan which Option is forfeited, cancelled,
terminated, expires or lapses for any reason or any shares subject to an Option
which shares are repurchased or reacquired by the Corporation; and
(iii) any shares surrendered by a Participant or withheld by the
Corporation to pay the Option Price for an Option or shares used to satisfy any
tax withholding requirement in connection with the exercise of an Option if, in
accordance with the terms of the Plan, a Participant pays such Option Price or
satisfies such tax withholding obligation by either tendering previously owned
shares or having the Corporation withhold shares.

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

6.                 
Eligibility.

An Option may be granted only to an individual
who is a Nonemployee Director on the date the Option is granted.

7.                 
Grant and Exercise of Options

(a)               
General:  Each Nonemployee Director who is otherwise
eligible under this Section 7 shall be granted an Option or Options as
provided in Section 7.  Such Options shall be designated as Nonqualified
Options.

(b)              
Grant of Initial Options Upon Initial Election or Appointment
to the Board:  

	
  6

  

 

 

 

 

 

 

(i)                
Unless a Nonemployee Director makes a proper election to receive
an Initial RSU in exchange for all or 50% of the total value (as defined below)
of an Initial Option as provided under the terms of the Director Compensation
Plan, each Nonemployee Director who is first elected or appointed to the Board
on or after the Effective Date shall receive an Initial Option to purchase
50,000 shares of Common Stock.  The date of grant of such an Initial Option
shall be the fifth business day after the date of the annual meeting of
shareholders as to those Nonemployee Directors who are first elected at an
annual meeting of shareholders and the fifth business day after the date of
election or appointment to the Board as to those Nonemployee Directors who are
first elected or appointed to the Board other than at an annual meeting of
shareholders.

(ii)        If a Director makes a proper election to receive an Initial RSU
in lieu of the grant of all of the Initial Option, the Director shall not also
be granted an Initial Option.  If a Director makes a proper election to receive
an Initial RSU in lieu of 50% of the total value an Initial Option, the
Director shall receive an Initial Option for a lesser number of shares of
Common Stock, as described herein.  Such Initial Option shall be subject to all
of the other terms applicable to Initial Options as provided in the Plan,
except for the reduction in the number of shares subject to the Option.  If the
Director elects to receive an Initial RSU in lieu of 50% of the total value of
an Initial Option, the number of shares subject to his Initial Option shall be
correspondingly reduced so that the aggregate of the value of the Initial Option
plus the value of the Initial RSU does not exceed the total value of the
Initial Option that would otherwise be granted under the Plan.  For the
purposes herein, the "total value" of an Initial Option shall
equal the number of shares subject to the Initial Option (that is, 50,000
shares) multiplied by the Black-Scholes value or similar methodology, as used
for compensation expense valuation purposes in the Company's financial
statements (the "Black-Scholes value") of the Option on (or as close
in time as practicable to) the date of grant.  The "value" of
an Initial RSU shall be determined by multiplying the number of shares subject
to the Initial RSU by the Black-Scholes value of the RSU on (or as close in
time as practicable to) the date of grant. The "value" of an
Initial Option shall equal the number of shares subject to the Initial Option multiplied
by the Black-Scholes value on (or as close in time as practicable to) the date
of grant. If the Director elects to receive all of his Initial Equity Award (as
defined in the Director Compensation Plan) in the form of an Initial RSU, the
number of shares subject to the Initial RSU will be equal to the total value of
the Initial Option divided by the Black-Scholes value for the RSU on (or as
close in time as practicable to) the Grant Date.  If the Director elects to
take 50% of the total value of his Initial Equity Award in the form of an
Initial RSU and 50% of the total value in the form of an Initial Option, the
number of shares subject to the Initial Option will be reduced by 50% and the
number of shares subject to the Initial RSU will equal 50% of the total value
of the Initial Option divided by the Black-Scholes value for the RSU on (or as
close in time as practicable to) the Grant Date.  The value of a Director's
Initial RSU plus the value of the Director's Initial Option shall be as close
as practicable to, but may not exceed, the total value of the Initial Option.

(c)               
Grant of Annual Options:  

	
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(i)                
Unless a Director makes a proper election to receive an Annual
RSU in exchange for all or 50% of the total value (as defined below) of an
Annual Option as provided in the Director Compensation Plan, each Nonemployee
Director also shall be granted, on an annual basis (commencing with the 2006
annual meeting of shareholders), an Annual Option to purchase 25,000
shares of Common Stock (or an Annual Option for 30,000 shares, in the case of
the nonemployee chairman of the Board), provided that the Nonemployee Director
continues to serve as a member of the Board as of the date of grant.  The date
of grant of an Annual Option shall be the fifth business day after the date of
the annual or other shareholders meeting at which Directors are elected. 
However, notwithstanding the foregoing, with respect to a new Nonemployee Director
who is appointed or elected other than at an annual meeting of shareholders,
the number of shares subject to the first Annual Option to be granted to such
Director shall be reduced by 25% for each three-month period (or portion
thereof) that the Director is not in office since the most recent annual
meeting of shareholders held prior to such Director's election or appointment. 
Further, a Nonemployee Director elected for the first time to the Board at an
annual meeting of shareholders shall only receive an Initial Option in
connection with such election, and shall not also receive an Annual Option on
the fifth business day following such meeting.

(ii)              
If a Director makes a proper election to receive an Annual RSU in
lieu of all of the total value of an Annual Option, he shall not also be
granted an Annual Option for that year.  If a Director makes a proper election
to receive an Annual RSU in lieu of 50% of the total value of an Annual Option,
the Director shall receive an Annual Option for a lesser number of shares of
Common Stock, as described herein.  Such Annual Option shall be subject to all
of the other terms applicable to Annual Options as provided in the Plan, except
for the reduction in the number of shares subject to the Option.  If the
Director elects to receive an Annual RSU in lieu of 50% of the total value of
an Annual Option, the number of shares subject to his Annual Option shall be
correspondingly reduced so that the aggregate of the value (as defined below) of
the Annual Option plus the value (as defined below) of the Annual RSU does not
exceed the total value (as defined below) of the Annual Option that would
otherwise be granted under the Plan.  For the purposes herein, the "total
value" of an Annual Option shall equal the number of shares subject to
the Annual Option (that is, 25,000 shares, or in the case of the nonemployee
chairman of the Board, 30,000 shares) multiplied by the Black-Scholes value of
the Option on (or as close in time as practicable to) the date of grant.  The "value"
of an Annual RSU shall be determined by multiplying the number of shares
subject to the Annual RSU by the Black-Scholes value of the RSU on (or as close
in time as practicable to) the date of grant. The "value" of
an Annual Option shall equal the number of shares subject to the Annual Option multiplied
by the Black-Scholes value of the Option on (or as close in time as practicable
to) the date of grant.  If the Director elects to receive all of his Annual
Equity Award (as defined in the Director Compensation Plan) in the form of an
Annual RSU, the number of shares subject to the Annual RSU will be equal to the
total value of the Annual Option divided by the Black-Scholes value for the RSU
on (or as close in time as practicable to) the Grant Date.  If the Director elects
to take 50% of the total value of his Annual Equity Award in the form of an
Annual RSU and 50% of the total value in the form of an Annual Option, the
number of shares subject to the Annual Option will be reduced by 50% and the
number of shares subject to the Annual RSU will equal 50% of the total value of
the Annual Option divided by the Black-Scholes value for the RSU on (or as
close in time as practicable to) the Grant Date.   The value of a Director's
Annual RSU plus the value of the Director's Annual Option shall be as close as
practicable to, but may not exceed, the total value of the Annual Option. 

(d)              
Grant of Supplemental Options:  

(i)                
General:  The Administrator may from time to time
authorize the grant of Supplemental Options to one or more Nonemployee
Directors.  A Supplemental Option may be based on a fixed dollar amount, a
fixed number of shares of Common Stock, a fixed Black Scholes value or such
other valuation formula(s) or factors as the Administrator determines in its
discretion.  The grant of a Supplemental Option to a Participant at any one
time does not create in any Nonemployee Director the right to receive any
additional Supplemental Options.

	
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(ii)              
Number of Shares Subject to Supplemental Options:  The
number of shares of Common Stock subject to any Supplemental Option to be
awarded to a Nonemployee Director shall be reduced by the number of shares, if
any, subject to any Supplemental RSUs granted to the Nonemployee Director
pursuant to any election the Director has made in accordance with the terms of
the Director Compensation Plan.  

(iii)            
Terms of Supplemental Options:  Unless the Administrator
determines otherwise, the following terms shall apply: If the Administrator
determines that a Supplemental Option is intended to supplement an Initial Option,
such Supplemental Option shall be subject to the grant date, Option Price,
Option Period, vesting, exercise and other terms and conditions of an Initial
Option as provided in Section 7 herein.  If the Administrator determines that a
Supplemental Option is intended to supplement an Annual Option, such
Supplemental Option shall be subject to the grant date, Option Price, Option
Period, vesting, exercise and other terms and conditions of an Annual Option,
as provided in Section 7 herein.  If a Supplemental Option is not intended to
supplement an Initial Option or an Annual Option, such Supplemental Option
shall be subject to such vesting and other terms and may be determined by the
Administrator, provided, however, that the provisions of Section 7(e) Section
7(f), Section 7(g), Section 7(h) and Section 7(i) shall apply to all
Supplemental Options.

(e)               
Option Price:  The price per share of Common Stock at
which an Option may be exercised shall be 100% of the Fair Market Value per
share of the Common Stock on the date the Option is granted.

(f)                
Option Period and Limitations on the Right to Exercise Options: 
The Option Period of an Option shall be 10 years from the date of grant. 
Initial Options shall become exercisable as provided in Section 7(f)(i).  Annual
Options shall become exercisable as provided in Section 7(f)(ii).  Supplemental
Options shall become exercisable as provided in Section 7(f)(iii).  To the
extent that all or part of an Option becomes exercisable but is not exercised,
such Option shall accumulate and be exercisable by the Director in whole or in
part at any time before the expiration of the Option Period.  Any Option or
portion thereof not exercised before expiration of the Option Period (or such
earlier date as may be provided in Section 7(h) herein) shall terminate.

(i)                
Initial Options.  An Initial Option shall vest and become
exercisable with respect to one-third of the shares subject to the Option on
the date of grant.  An Initial Option shall vest and become exercisable with
respect to the remaining two-thirds of the shares subject to the Option in two
equal annual installments on each of the first and second anniversaries of the
date of grant, so that an Initial Option will be vested and exercisable in full
on the second anniversary of the date of grant, provided that the Nonemployee
Director remains in service on each such vesting date.

(ii)              
Annual Options.  An Annual Option shall vest and become
exercisable on the date of grant.

	
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(iii)            
Supplemental Options.  Unless the Administrator determines
otherwise, the following terms shall apply:  If the Administrator grants a
Supplemental Option that is intended to supplement an Initial Option, such
Supplemental Option shall have the same vesting terms as those applicable to
Initial Options, as provided in Section 7(f)(i) herein.  If the Administrator
grants a Supplemental Option that is intended to supplement an Annual Option,
such Supplemental Option shall have the same vesting terms as that applicable
to Annual Options (i.e., fully vested at grant), as provided in Section
7(f)(ii) herein.  If the Administrator grants a Supplemental Option that is not
intended to supplement either an Initial Option or an Annual Option, such
Supplemental Option shall have such vesting terms, if any,  as may be
established by the Administrator.

(g)              
Manner of Exercise: An Option may be exercised by giving
written notice to the Corporation in form acceptable to the Administrator at
such place and subject to such conditions as may be established by the
Administrator or its designee.  Such notice shall specify the number of shares
to be purchased pursuant to an Option and the aggregate purchase price to be
paid therefor and shall be accompanied by payment of such purchase price.  The
total number of shares that may be acquired upon exercise of an Option shall be
rounded down to the nearest whole share.  Unless an Option Agreement provides
otherwise, such payment shall be in the form of cash or cash equivalent;
provided that, if and to the extent permitted by the Administrator and
applicable laws, rules and regulations (and subject to such terms and
conditions as may be established by the Administrator), payment may also be
made:

(i)                
By delivery (by either actual delivery or attestation) of shares
of Common Stock owned by the Participant for such time period, if any, as may
be determined by the Administrator;

(ii)              
By shares of Common Stock withheld upon exercise;

(iii)            
By delivery of written notice of exercise to the Corporation and
delivery to a broker of written notice of exercise and irrevocable instructions
to promptly deliver to the Corporation the amount of sale or loan proceeds to
pay the Option Price;

(iv)            
By such other payment methods as may be approved by the
Administrator and which are acceptable under applicable law; and/or

(v)              
By any combination of the foregoing methods.

Shares tendered or
withheld in payment on the exercise of an Option shall be valued at their Fair
Market Value as of the date of exercise.

(h)              
Effect of Termination of Service on Right to Exercise:  Unless
the Administrator determines otherwise (subject to any requirements imposed
under Code Section 409A), in the event that a Participant terminates service as a Director, (i) an Option may be exercised only to the extent vested and exercisable on the Participant's Termination Date (unless the termination was for Cause), and must be exercised,
if at all, prior to the close of the Option Period, and (ii) any Option (or
portion thereof) which has not vested and become exercisable as of the
Participant's Termination Date shall terminate as of the Participant's
Termination Date.  If the services of a Nonemployee Director are terminated for
Cause, his Option (whether vested or unvested) shall lapse and no longer be
exercisable as of his Termination Date, as determined by the Administrator.

(i)                
Nontransferability: An Option shall not be transferable
(including by sale, assignment, pledge or hypothecation) other than by will or
the laws of intestate succession, except as may be permitted by the
Administrator in a manner consistent with the registration provisions of the
Securities Act.  Except as may be permitted by the preceding sentence, an
Option shall be exercisable during the Participant's lifetime only by him or by
his guardian or legal representative.  The designation of a beneficiary in
accordance with the Plan does not constitute a transfer.

	
  10

  

 

 

 

 

 

 

8.                 
No Right or Obligation of Continued Service

Neither the Plan, the grant of an Option nor
any other action related to the Plan shall confer upon the Participant any
right to continue in the service of the Corporation as a Director or to
interfere in any way with the right of the Corporation to terminate the
Participant's service at any time.  Except as may be otherwise provided in the
Plan or an Option Agreement (or as may be otherwise determined by the
Administrator), all rights of a Participant with respect to an Option shall
terminate immediately upon the Participant's termination of service as a
Director.

9.                 
Amendment and Termination of the Plan

(a)               
Amendment and Termination of Plan:  The Plan may be
amended, altered and/or terminated at any time by the Board; provided, that
(i) approval of an amendment to the Plan by the shareholders of the
Corporation shall be required to the extent, if any, that shareholder approval
of such amendment is required by applicable law, rule or regulation; and
(ii) except for adjustments made pursuant to Section 5(c), the Option
Price for any outstanding Option may not be decreased after the date of grant,
nor may any outstanding Option be surrendered to the Corporation as
consideration for the grant of a new Option with a lower Option Price than the
original Option, without shareholder approval of any such action.

(b)              
Amendment of Options:  The Administrator may amend, alter
or terminate any Option granted under the Plan, prospectively or retroactively,
but such amendment, alteration or termination of an Option shall not, without
the consent of the recipient of an outstanding Option, materially adversely
affect the rights of the recipient with respect to the Option.

(c)               
Unilateral Authority of Administrator to Modify Plan and
Options:  Notwithstanding Section 9(a) and Section 9(b) herein,
the following provisions shall apply:

(i)                
The Administrator shall have unilateral authority to amend the
Plan and any Option (without Participant consent and without shareholder approval,
unless such shareholder approval is required by applicable laws, rules or
regulations) to the extent necessary to comply with applicable laws, rules or
regulations or changes to applicable laws, rules or regulations (including but
not limited to Code Section 409A and federal securities laws).

(ii)              
The Administrator shall have unilateral authority to make
adjustments to the terms and conditions of Options in recognition of unusual or
nonrecurring events affecting the Corporation or any Affiliate, or the financial
statements of the Corporation or any Affiliate, or of changes in accounting
principles, if the Administrator determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or necessary or
appropriate to comply with applicable accounting principles.

 

 

 

 

 

 

	
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10.             
Restrictions on Options and Shares

The Corporation may impose such restrictions on
Options, shares and any other benefits underlying Options hereunder as it may
deem advisable, including without limitation restrictions under the federal
securities laws, the requirements of any stock exchange or similar organization
and any blue sky, state or foreign securities laws applicable to such securities. 
Notwithstanding any other Plan provision to the contrary, the Corporation shall
not be obligated to issue, deliver or transfer shares of Common Stock under the
Plan, make any other distribution of benefits under the Plan, or take any other
action, unless such delivery, distribution or action is in compliance with all
applicable laws, rules and regulations (including but not limited to the
requirements of the Securities Act).  The Corporation may cause a restrictive
legend to be placed on any certificate(s) for shares issued pursuant to
exercise of an Option hereunder in such form as may be prescribed from time to
time by applicable laws and regulations or as may be advised by legal counsel.

11.             
Change of Control

(a)               
Notwithstanding any other provision of the Plan to the contrary,
and unless and Option Agreement provides otherwise (or as may otherwise be
required under Code Section 409A), in the event of a Change of Control, all options outstanding as of the date of such Change of Control shall become fully vested and exercisable, whether or not then otherwise vested and exercisable.

(b)              
Notwithstanding the foregoing, in the event of a merger, share
exchange, reorganization or other business combination affecting the
Corporation or an Affiliate, the Administrator may, in its sole and absolute
discretion, determine that any or all Options granted pursuant to the Plan
shall not vest or become exercisable on an accelerated basis, if the
Corporation or the surviving or acquiring corporation, as the case may be, shall
have taken such action, including but not limited to the assumption of options
granted under the Plan or the grant of substitute options (in either case, with
substantially similar terms or equivalent economic benefits as Options granted
under the Plan), as in the opinion of the Administrator is equitable or
appropriate to protect the rights and interests of participants under the
Plan.  For the purposes herein, if the Committee is acting as the Administrator
authorized to make the determinations provided for in this Section 11(b),
the Committee shall be appointed by the Board, two-thirds of the members of
which shall have been Directors of the Corporation prior to the merger, shall
exchange, reorganization or other business combinations affecting the Corporation
or an Affiliate.

12.             
Compliance with Code Section 409A

	
  12

  

 

 

 

 

 

 

Notwithstanding any other provision in the Plan
or an Option Agreement to the contrary, if and to the extent that Code Section 409A is deemed to apply to the Plan or any Option granted under the Plan, it is the general intention of the Corporation that the Plan and all such Options shall, to the extent practicable, comply with, or be exempt from, Code Section 409A, and the Plan and any such Option shall, to the extent practicable, be construed in accordance therewith.  Deferrals pursuant to an Option otherwise exempt from Code Section 409A in a manner that would cause Code Section 409A to apply shall not be permitted unless such deferrals are in compliance with Code Section 409A.  Without in any way limiting the effect of the foregoing, (i) in the event that Code Section 409A requires that any special terms, provisions or conditions be included in the Plan or any Option, then such terms, provisions and conditions shall, to the extent practicable, be deemed to be made a part of the Plan or Option, as applicable; and
(ii) terms used in the Plan or an Option Agreement shall be construed in
accordance with Code Section 409A if and to the extent required.  Further, in the event that the Plan or any Option shall be deemed not to comply with Code Section 409A, then neither the Corporation, the Administrator nor its or their designees or agents shall be liable to any Participant or other person for actions, decisions or determinations made in good faith.

13.             
General Provisions

(a)               
Shareholder Rights:  Except as otherwise determined by the
Administrator, a Participant and his legal representative, legatees or
distributees shall not be deemed to be the holder of any shares subject to an
Option and shall not have any rights of a shareholder unless and until
certificates for such shares have been issued and delivered to him or them
under the Plan (or in the case of uncertificated shares, other written notice
of ownership in accordance with applicable laws shall have been provided).  A
certificate or certificates for shares of Common Stock acquired upon exercise
of an Option shall be promptly issued in the name of the Participant or his
beneficiary and distributed to the Participant or his beneficiary (or, in the
case of uncertificated shares, other written notice of ownership in accordance
with applicable laws shall be provided) as soon as practicable following
receipt of notice of exercise and payment of the Option Price (except as may
otherwise be determined by the Corporation in the event of payment of the
Option Price pursuant to Section 7(g)(iii)).

(b)              
Withholding: If and to the extent required by applicable
laws, rules or regulations, the Corporation shall withhold all required local,
state, federal, foreign and other taxes and any other amount required to be
withheld by any governmental authority or law from any amount payable with
respect to an Option.  Prior to the delivery or transfer of any certificate for
shares or any other benefit conferred under the Plan, the Corporation shall
require any recipient of an Option to pay to the Corporation in cash the amount
of any tax or other amount required by any governmental authority to be
withheld and paid over by the Corporation to such authority for the account of
such recipient. Notwithstanding the foregoing, the Administrator may establish
procedures to permit a recipient to satisfy such obligation in whole or in
part, and any local, state, federal, foreign or other income tax obligations
relating to such an Option, by electing (the "election") to have the
Corporation withhold shares of Common Stock from the shares to which the
recipient is entitled. The number of shares to be withheld shall have a Fair
Market Value as of the date that the amount of tax to be withheld is determined
as nearly equal as possible to (but not exceeding) the amount of such
obligations being satisfied. Each election must be made in writing to the
Administrator in accordance with election procedures established by the
Administrator.

(c)               
Section 16(b) Compliance:  To the extent that any
Participants in the Plan are subject to Section 16(b) of the Exchange Act,
it is the general intention of the Corporation that transactions under the Plan
shall comply with Rule 16b-3 under the Exchange Act and that the Plan shall be
construed in favor of such Plan transactions meeting the requirements of Rule
16b-3 or any successor rules thereto.

(d)              
Unfunded Plan; No Effect on Other Plans:

	
  13

  

 

 

 

 

 

 

(i)                
The Plan shall be unfunded, and the Corporation shall not be
required to create a trust or segregate any assets that may at any time be
represented by Options under the Plan.  The Plan shall not establish any
fiduciary relationship between the Corporation and any Participant or other
person.  Neither a Participant nor any other person shall, by reason of the
Plan, acquire any right in or title to any assets, funds or property of the
Corporation or any Affiliate, including, without limitation, any specific
funds, assets or other property which the Corporation or any Affiliate, in
their discretion, may set aside in anticipation of a liability under the Plan. 
A Participant shall have only a contractual right to the Common Stock or other
amounts, if any, payable under the Plan, unsecured by any assets of the
Corporation or any Affiliate.  Nothing contained in the Plan shall constitute a
guarantee that the assets of such entities shall be sufficient to pay any
benefits to any person.

(ii)              
The amount of any compensation deemed to be received by a
Participant pursuant to an Option shall not constitute compensation with
respect to which any other benefits of such Participant are determined, except
as otherwise specifically provided by the terms of such plan or as may be
determined by the Administrator.

(iii)            
The adoption of the Plan shall not affect any other stock incentive
or other compensation plans in effect for the Corporation or any Affiliate, nor
shall the Plan preclude the Corporation from establishing any other forms of
stock incentive or other compensation for employees or service providers of the
Corporation or any Affiliate.

(e)               
Applicable Law:  The Plan shall be governed by and
construed in accordance with the laws of the State of North Carolina, without
regard to the conflict of laws provisions of any state, and in accordance with
applicable federal laws of the United States.

(f)                
Beneficiary Designation:  The Administrator may permit a
Participant to designate in writing a person or persons as beneficiary, which
beneficiary shall be entitled to receive settlement of Options (if any) to
which the Participant is otherwise entitled in the event of death.  In the
absence of such designation by a Participant, and in the event of the
Participant's death, the estate of the Participant shall be treated as
beneficiary for purposes of the Plan, unless the Administrator determines
otherwise. The Administrator shall have sole discretion to approve and
interpret the form or forms of such beneficiary designation.  A beneficiary,
legal guardian, legal representative or other person claiming any rights
pursuant to the Plan is subject to all terms and conditions of the Plan and any
Option Agreement applicable to the Participant, except to the extent that the
Plan and/or Option Agreement provide otherwise, and to any additional
restrictions deemed necessary or appropriate by the Administrator.

(g)              
Gender and Number:  Except where otherwise indicated by
the context, words in any gender shall include any other gender, words in the
singular shall include the plural and words in the plural shall include the
singular.

(h)              
Severability:  If any provision of the Plan shall be held
illegal or invalid for any reason, such illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

(i)                
Rules of Construction:  Headings are given to the sections
of this Plan solely as a convenience to facilitate reference.  The reference
to any statute, regulation or other provision of law shall be construed to
refer to any amendment to or successor of such provision of law.

(j)                
Successors and Assigns:  The Plan shall be binding upon
the Corporation, its successors and assigns, and Participants, their executors,
administrators and permitted transferees and beneficiaries.

	
  14

  

 

 

 

 

 

 

(k)              
Right of Offset:  Notwithstanding any other provision of
the Plan or an Option Agreement, the Corporation may (subject to any Code Section 409A considerations) reduce the amount of any benefit otherwise distributable to or on behalf of a Participant by the amount of any obligation of the Participant to the Corporation that is or becomes due and payable.

IN WITNESS WHEREOF, this RF Micro Devices, Inc.
2006 Directors Stock Option Plan, as amended and restated effective May 7, 2009,
is, by the authority of the Board of Directors of the Corporation, executed in
behalf of the Corporation, effective as of the 7th day of May, 2009.

RF MICRO
DEVICES, INC.

By:       /s/ Robert A.
Bruggeworth

Robert A. Bruggeworth

Chief Executive Officer

 

ATTEST:

/s/ William A. Priddy, Jr.

Secretary/Asst. Secretary

[Corporate Seal]

	
  15

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