Document:

Memorandum of Agreement - Newcastle

    Exhibit
      10.171

    
 

    MEMORANDUM
      OF AGREEMENT

    

    between

    

    CHICORY
      INVESTMENTS (PROPRIETARY) LIMITED

    Registration
      No. 1985/000896/07

    

    DYNAMO
      INVESTMENTS LIMITED

    Registration
      No. 1995/004006/06

    

    HARVEST
      MOON INVESTMENT HOLDINGS (PROPRIETARY) LIMITED

    Registration
      No. 1998/010314/07

    

    IZULU
      GAMING (PROPRIETARY) LIMITED

    Registration
      No. 1998/008061/07

    

    KHULANI
      HOLDINGS LIMITED

    Registration
      No. 1979/006828/06

    

    LIBALELE
      LEISURE (PROPRIETARY) LIMITED

    Registration
      No. 1998/011953/07

    

    MALESELA
      GAMING (PROPRIETARY) LIMITED

    Registration
      No. 1998/018625/07

    

    

    
      
         

        

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    OAKLAND
      LEISURE INVESTMENTS (NEWCASTLE)

    (PROPRIETARY)
      LIMITED

    Registration
      No. 1997/009965/07

    

    PURPLE
      RAIN PROPERTIES NO 62 (PROPRIETARY) LIMITED

    Registration
      No. 1997/020100/07

    

    

    RUVUMA
      INVESTMENT (PROPRIETARY) LIMITED

    Registration
      No. 1997/016346/07

    

    SAPHILA
      INVESTMENTS (PROPRIETARY) LIMITED

    Registration
      No. 1998/011294/07

    

    VIVA
      LEISURE INVESTMENT HOLDINGS (PROPRIETARY) LIMITED

    Registration
      No. 1997/015979/07

    

    THE
      VIVA TRUST

    Registration
      No. IT 954/1991

    

    

    (jointly
      “the Sellers”)

    

    and

    

    CENTURY
      CASINOS AFRICA (PROPRIETARY) LIMITED 

    Registration
      No. 1996/010501/07

    (“the
      Purchaser”)

    
      
         

        

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    and

    

    BALELE
      LEISURE (PROPRIETARY) LIMITED

    Registration
      No. 1998/002723/07

    (“Balele”)

    

    and

    

    WINLEN
      CASINO OPERATORS (PROPRIETARY) LIMITED

    Registration
      No. 2000/029023/07

    (“Winlen”)

    

    WHEREAS
      the Sellers and the Purchaser on 18 October 2005 entered into an agreement
      of
      sale in terms of which the Sellers sold to the Purchaser and the Purchaser
      purchased from the Sellers shares in the issued share capital of Balele
      representing in total approximately, but not less than, 60% (sixty percent)
      of
      the issued share capital of Balele (“the Share Sale Agreement”);

    

    AND
      WHEREAS the Sellers are in breach of certain of the warranties, undertakings
      and
      representations made by the Sellers to the Purchaser in the Share Sale
      Agreement;

    

    AND
      WHEREAS the Sellers and the Purchaser wish to record in writing the terms of
      agreement arrived at between them to compensate the Purchaser for the damages
      suffered by the Purchaser as a result of the warranties, undertakings and
      representations having been breached and to avoid litigation from arising in
      such regard;

    

    AND
      WHEREAS Winlen is an interested party insofar that Winlen is named in the
Share
      Sale Agreement, the Sellers constitute the majority of the members of Winlen
      and
      Winlen is a member of Balele;

    
      
         

        

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    NOW
      THEREFORE THE PARTIES HEREBY AGREE AS FOLLOWS:

    

    1.
      ACKNOWLEDGMENT OF BREACH

    

    The
      Sellers jointly and severally hereby irrevocably acknowledge and agree that
      the
      Sellers are in breach of the terms of the Share Sale Agreement insofar that
      they
      warranted, undertook and represented to the Purchaser:

    

    
      	
              1.1.

            	
              that
                the market value of Erf 6350 Newcastle (Extension No. 34), Registration
                Division HS, in the Newcastle Transitional Local Council Area, Province
                of
                KwaZulu-Natal, measuring 28,9284 hectares, held by Balele under deed
                of
                transfer no. T1149/99 (“Erf 6350”) as at 18 October 2005 would be not less
                than R12 000 000.00 (twelve million rand) exclusive of VAT, which
                was
                false;

            

    

    

    
      	
              1.2.
                

            	
              that
                there would be a reasonable prospect of Balele selling Erf 6350 for
                a
                selling price of not less than R12 000 000.00 (twelve million rand)
                exclusive of VAT, which was false;
                and

            

    

    

    
      	
              1.3.
                

            	
              that
                Balele would succeed within a period of 60 (sixty) days after the
                closing
                date referred to in the Share Sale Agreement in concluding with a
                third
                party a written agreement for the sale of Erf 6350 for a selling
                price of
                R12 000 000.00 (twelve million rand) exclusive of VAT, or more, on
                terms
                reasonably acceptable to the Sellers and the Purchaser, which was
                false as
                there is no reasonable prospect of such a sale being concluded within
                the
                said 60 (sixty) day period.

            

    

    

    2.
      ACKNOWLEDGMENT OF LOSS

    

    The
      Sellers jointly and severally irrevocably acknowledge and agree
      that:

    

    
      	
              2.1.

            	
              as
                a result of the breach by the Sellers of the warranties referred to in
                clause 1 hereof, the Purchaser has suffered a loss as contemplated
                in
                clause 10.2.7 of the Share Sale Agreement equal to R12 000 000.00
                (twelve
                million rand) and is entitled to set-off the said sum against the
                balance
                of the purchase price payable by the Purchaser to the Sellers for
                the
                shares of Balele purchased by the Purchaser from the Sellers in terms
                of
                the Share Sale Agreement, the Sellers and the Purchaser being under
                an
                obligation in terms of clause 10.2.7 of the Share Sale Agreement
                in

            

    

    
      
         

        

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    such
      circumstances to transfer Erf 6350 to Winlen as successor in title of the
      Sellers. The purchase price of R57 500 000.00 (fifty-seven million five hundred
      thousand rand) or, in the event of the gross gaming revenue of the Permanent
      Casino exceeding R95 000 000.00 (ninety-five million rand) in the first 12
      (twelve) months following the date of commencement of trading operations of
      the
      Permanent Casino, an amount of R60
      000
      000.00 (sixty million rand) less an amount equal to the amount (if any) payable
      by Balele to South African Revenue Service upon resolution of the dispute with
      South African Revenue Service referred to in paragraph 33 of Annexure “A” to the
      Share Sale Agreement is consequently reduced to R45 500 000.00 (forty-five
      million five hundred thousand rand) or, in the event of the gross gaming revenue
      of the Permanent Casino exceeding

    R95
      000
      000.00 (ninety-five million rand) in the first 12 (twelve) months following
      the
      date of commencement of trading operations of the Permanent Casino, an amount
      of

    R48
      000
      000.00 (forty-eight million rand) less an amount equal to the amount (if any)
      payable by Balele to South African Revenue Service upon resolution of the
      dispute with South African Revenue Service referred to in paragraph 33 of
      Annexure “A” to the Share Sale Agreement;

    

    
      	
              2.2.
                

            	
              the
                Purchaser is entitled to the release from pledge of all shares of
                Balele
                owned by the Purchaser pledged to the Sellers as security for fulfillment
                of the obligations of the Purchaser relating to payment of the purchase
                price to the Sellers.

            

    

    

    3.
      AMENDMENT OF PAYMENT TERMS

    

    In
      consequence of the reduction of the purchase price payable by the Purchaser
      to
      the Sellers for the shares in Balele purchased by the Purchaser from the Sellers
      in terms of the Share Sale Agreement, by reason of set-off as recorded in clause
      2.2 hereof, the amount of R17 000 000.00 (seventeen million rand) payable by
      the
      Purchaser on account of the purchase price as provided in terms of clause 4.2
      of
      the Share Sale Agreement shall be reduced to R5 000 000.00 (five million
      rand).

    

    4.
      CONSENT BY THE SELLERS

    

    The
      Sellers consent to the sale of Erf 6350 by Balele to Winlen as provided
      hereinafter.

    
      
         

        

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    5.
      CONSENT BY WINLEN

    

    Winlen,
      as a member of Balele, hereby consents to the sale by Balele to Winlen of Erf
      6350 as provided hereinafter.

    

    6.
      SALE

    

    
      	
              6.1.

            	
              Balele
                hereby sells to Winlen and Winlen hereby purchases Erf
                6350.

            

    

    

    
      	
              6.2.

            	
              The
                purchase price payable by Winlen to Balele for Erf 6350 shall be
                the sum
                of R1,00 (one rand) plus value added
                tax.

            

    

    

    
      	
              6.3.

            	
              Payment
                of the purchase price shall be effected by Winlen to Balele upon
                registration of transfer of Erf 6350 into the name of
                Winlen.

            

    

    

    
      	
              6.4.

            	
              Transfer
                of Erf 6350 shall be passed by conveyancers appointed by Balele and
                shall
                be given and taken as soon as reasonably possible after the date
                of
                signature of this agreement.

            

    

    

    
      	
              6.5.

            	
              Erf
                6350 shall be transferred to Winlen voetstoots, as Erf 6350 stands
                and
                subject to any and every condition and servitude specified in the
                original
                title and all subsequent title deeds to Erf
                6350.

            

    

    

    
      	
              6.6.

            	
              Balele
                gives no warranty, express or implied, against defects, whether latent
                or
                patent, in Erf 6350 or any improvements
                thereon.

            

    

    

    
      	
              6.7.

            	
              Winlen
                shall be obliged to let Erf 6350 to Balele for a rental not exceeding
                R120
                000.00 (one hundred and twenty thousand rand) per month, inclusive
                of VAT,
                from the date of registration of transfer of Erf 6350 into the name
                of
                Winlen until Balele takes occupation of the Permanent Casino which
                Balele
                is in the process of erecting.

            

    

    

    
      	6.8.          
                        	
              All
                costs relating to preparation and signature of this agreement and
                all
                costs relating to registration of transfer of Erf 6350 from Balele
                to
                Winlen, including value added tax on such costs, shall be borne by
                Winlen
                and be paid upon request.

            

    

    
      
         

        

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    7.
      GENERAL

    

    
      	
              7.1.

            	
              No
                alteration, cancellation, variation of, or addition hereto shall
                be of any
                force or effect unless reduced to writing and signed by all the parties
                to
                this agreement or their duly authorised
                representatives.

            

    

    

    
      	
              7.2.
                

            	
              This
                document contains the entire agreement between the parties relating
                to
                these presents and no party shall be bound by any undertakings,
                representations, warranties, promises or the like not recorded
                herein.

            

    

    

    
      	
              7.3.

            	
              No
                indulgence, leniency or extension of time which any party may grant
                or
                show to any other party, shall in any way prejudice such party or
                preclude
                such party from exercising any of that party’s rights in the
                future.

            

    

    

    
      	7.4.           
              	
              The
                parties undertake at all times to do all such things, to perform
                all such
                acts and to take all such steps and to procure the doing of all such
                things, the performance of all such actions and the taking of all
                such
                steps as may be open to them and necessary for or incidental to the
                putting into effect or maintenance of the terms, conditions and import
                of
                this agreement.

            

    

    

    SIGNED
      AT
      CAPETOWN THIS 31st
      DAY OF
      MARCH, 2006 

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of

    Chicory
      Investments (Proprietary)
      Limited

    
      
         

        

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    SIGNED
      AT
  THIS      
      DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of

    Dynamo
      Investments Limited

    

    

    SIGNED
      AT
  THIS          
      DAY
      OF      
2006
      

    

    AS
      WITNESSES:

     

    1._____________________                       
/s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of

    Harvest
      Moon Investment 

    Holdings
      (Proprietary) Limited

    

    

    SIGNED
      AT
  THIS           DAY
      OF      
2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of

    Izulu
      Gaming (Proprietary) Limited

    

    
      
         

        

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    SIGNED
      AT
  THIS           DAY
      OF      
      2006

    

    AS
      WITNESSES:

     

    1._____________________                        /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                        who
      warrants he is
      duly

    authorised
      hereto for and on

    behalf
      of

    Khulani
      Holdings Limited 

    

    

    SIGNED
      AT
  THIS           DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of

    Libalele
      Leisure (Proprietary) Limited

    

    

    SIGNED
      AT
  THIS          DAY
      OF      
      2006

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of

    Malesela
      Gaming (Proprietary)
      Limited

    

    

    
      
         

        

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    SIGNED
      AT
  THIS          
      DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                        who
      warrants he is
      duly

    authorised
      hereto for and on

    behalf
      of

    Oakland
      Leisure Investments (Newcastle)

    (Proprietary)
      Limited

    

    

    SIGNED
      AT
  THIS            DAY
      OF      
      2006

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                        who
      warrants he is
      duly

    authorised
      hereto for and on

    behalf
      of

    Purple
      Rain Properties No 62 (Proprietary)
      Limited

    

    

    SIGNED
      AT
  THIS           DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of

    Ruvuma
      Investment (Proprietary)
      Limited

    

    

    
      
         

        

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    SIGNED
      AT
  THIS           DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                       who
      warrants he is
      duly

    authorised
      hereto for and on

    behalf
      of

    Saphila
      Investments (Proprietary)
      Limited

    

    SIGNED
      AT
  THIS           DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy

    Vathasallum
      Reddy

    2._____________________                       who
      warrants he is
      duly

    authorised
      hereto for and on

    behalf
      of

    Viva
      Leisure Investment Holdings
      (Proprietary) Limited

    

    SIGNED
      AT
  THIS           DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                       /s/
      V.
      Reddy  

    Vathasallum
      Reddy

    2._____________________                     who
      warrants he is duly

    authorised
      hereto for and on

    behalf
      of
The
      Viva
      Trust 

     

    

    

    SIGNED
      AT
      VIENNA THIS  2nd     DAY
      OF     MAY 2006 

    

    AS
      WITNESSES:

     

    1._/s/
      Ulrike Pichler_______                     /s/
      Christian Gernert 

    For
      and
      on behalf of

    2._____________________                     Century
      Casinos Africa (Proprietary)
      Limited

    
      
        

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    SIGNED
      AT
  THIS           DAY
      OF       2006
      

    

    AS
      WITNESSES:

     

    1._____________________                     /s/
      V.
      Reddy  

    For
      and
      on behalf of

    2._____________________                      
Balele
      Leisure (Proprietary)
Limited

    

    

    SIGNED
      AT
  THIS           DAY
      OF       2006
      

     

    AS
      WITNESSES:

     

    1._____________________                      /s/
      V.
      Reddy  

    For
      and
      on behalf of

    2._____________________                     Winlen
      Casino Operators (Proprietary)
      LimitedNONEMPLOYEE DIRECTORS' STOCK OPTION PLAN

 

OF

 

RF MICRO DEVICES, INC.

(As Amended and Restated Through June 13, 2003) 

 

 

 

 

 

 

 

NONEMPLOYEE DIRECTORS' STOCK OPTION PLAN

OF

RF MICRO DEVICES, INC.

(As Amended and Restated Through June 13, 2003)

1.         Purpose.

            The purposes of
the Nonemployee Directors' Stock Option Plan of RF Micro Devices, Inc., as
amended and restated through June 13, 2003 (the "Plan"), are to
compensate nonemployee members of the Board of Directors (the
"Board") of RF Micro Devices, Inc. (the "Corporation") for
their service on the Board, encourage and enable such members to acquire or to
increase their holdings of common stock of the Corporation (the "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, and allow the Corporation to attract and
retain qualified nonemployee members of the Board.  These purposes will be
carried out through the granting of stock options to nonemployee Directors. 
Such options include options granted to nonemployee Directors upon consummation
of an initial public offering, and, with respect to nonemployee Directors
elected to the Board after consummation of an initial public offering, upon the
initial election or appointment to the Board (collectively, "Initial
Awards"), and options granted to nonemployee Directors on an annual basis
after consummation of an initial public offering ("Annual Awards"). 
Initial Awards and Annual Awards are referred to collectively herein as
"Options" and individually as an "Option."  Such Options
are not intended to qualify for treatment as incentive stock options described
in Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code").  For the purposes herein, a "nonemployee Director"
shall mean a Director who is not at the time an option is granted an employee
of the Corporation or a related corporation.

2.         Administration
of the Plan.

            (a)        The
Plan shall be administered by the Board of Directors of the Corporation, or,
upon its delegation, by the Compensation Committee of the Board (the
"Committee").  To the extent deemed necessary or advisable by the
Board, the Committee shall include no fewer than the minimum number of
"non-employee directors," as such term is defined in Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"),  as may be required by Rule 16b-3 or any successor
rule.  For the purposes herein, the Board and, upon its delegation of
administrative authority to the Committee, the Committee, shall (except for
references to the Board in Section 13) be referred to herein as the
"Administrator."

            (b)        Any
action of the Administrator may be taken by a written instrument signed by all
of the members of the Administrator and any 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.  Subject to the provisions of the
Plan, the Administrator shall have full and final authority, in its discretion,
to establish, amend and rescind rules and regulations for the administration of
the Plan; to construe and interpret the Plan, the rules and regulations, and
the agreements evidencing Options granted under the Plan; and to make all other
determinations deemed necessary or advisable for administering the Plan.  In
addition, the Administrator shall have complete authority, in its discretion,
to accelerate the date that any Option shall become exercisable in whole or in
part, even if such Option was not otherwise exercisable, without any obligation
to accelerate any other Option granted to any person.  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 or any
Option or agreement.

3.         Effective
Date; Term of the Plan.

            The effective
date of the Plan was June 6, 1997, the date of consummation of an initial
public offering (as defined in Section 6(a)(i) herein) (the "Public
Offering Date").  The Plan was amended and restated effective January 26, 1999, and further amended and restated effective March 27, 2001 and June 13, 2003.  Options may be granted under the Plan on or after the effective date, but
not after the tenth anniversary of the Public Offering Date.

4.         Shares of
Common Stock Subject to the Plan.

            Subject to
adjustments as provided in this Section 4, the number of shares of Common Stock
that may be issued pursuant to Options shall not exceed in the aggregate
200,000 shares of authorized but unissued Common Stock.  Such shares shall be
authorized but unissued shares or shares purchased on the open market or by
private purchase.  The Corporation hereby reserves sufficient authorized shares
to provide for the exercise of Options granted under the Plan.  Any shares
subject to an Option which, for any reason, expires or is terminated
unexercised as to such shares may again be subject to an Option granted under
the Plan.  If there is any change in the shares of Common Stock because of a
merger, consolidation or reorganization involving the Corporation or a related
corporation, or if the Board declares a stock dividend or stock split
distributable in shares of Common Stock, or if there is a similar change in the
capital structure of the Corporation or a related corporation 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 or to any provisions of the Plan as the
Administrator deems equitable to prevent dilution or enlargement of Options or
as may otherwise be advisable.

5.         Eligibility.

            An Option may be
granted only to an individual who is a nonemployee Director on the date the
Option is granted.  An eligible participant in the Plan is referred to herein
as a "nonemployee Director" or a "Director."

6.         Grant of Options, etc.

            (a)        Initial
Awards.  

                                    (i)         Initial
Awards Upon Completion of Initial Public Offering.  Each nonemployee
Director in service at the time of consummation of an initial public offering
of the Common Stock shall receive an Option for 10,000 shares of Common Stock. 
The grant of such Initial Award shall be effective concurrently with the
consummation of such initial public offering.  For the purposes of the Plan,
the phrase "consummation of an initial public offering" shall mean
the closing of a firm commitment underwritten public offering of the Company's
Common Stock pursuant to a registration statement on Form S-1 filed under the
Securities Act of 1933, as amended (the "Securities Act").

	
  2

  

                                    (ii)        Initial
Awards Upon Initial Election or Appointment to the Board.  Each nonemployee
Director who is first elected or appointed to the Board after consummation of
an initial public offering and prior to March 27, 2001 shall receive an Option to purchase 10,000 shares of Common Stock.  Each nonemployee Director who is first
elected or appointed to the Board on or after March 27, 2001 shall receive an Option to purchase 20,000 shares of Common Stock.  The date of grant of such an
Initial Award 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.

            (b)        Annual
Awards.  

            (i)         Each
nonemployee Director who is re-elected to the Board by the shareholders of the
Company at an annual or other meeting of the shareholders occurring after
consummation of an initial public offering and before the 1999 Annual Meeting
of Shareholders shall be granted, on an annual basis, an Option to purchase
5,000 shares of Common Stock.  The date of grant of such an Annual Award shall
be the fifth business day after the date of the annual or other shareholders
meeting at which such Director is re-elected.

            (ii)        Each
nonemployee Director who is re-elected to the Board by the shareholders of the
Company at an annual or other meeting of the shareholders commencing with the
1999 Annual Meeting of Shareholders and ending immediately prior to the 2001
Annual Meeting of Shareholders shall be granted, on an annual basis, an Option
to purchase 10,000 shares of the Common Stock.  The date of grant of such an Annual
Award shall be the fifth business day after the date of the annual or other
shareholders meeting at which such Director is re-elected.

            (iii)       Commencing
with the 2001 Annual Meeting of Shareholders, each nonemployee Director who is
re-elected to the Board by the shareholders of the Company at an annual or
other meeting of the shareholders shall be granted, on an annual basis, an
Option to purchase 20,000 shares of the Common Stock.  The date of grant of
such an Annual Award shall be the fifth business day after the date of the
annual or other shareholders meeting at which such Director is re-elected.

7.         Option Price.

	
  3

  

            The price per
share of Common Stock at which an Option may be exercised (the "Option
Price") shall be the fair market value per share of the Common Stock on
the date the Option is granted.  For this purpose, "fair market
value" shall be determined in accordance with the following provisions:
(i) if the shares of Common Stock are listed for trading on the New York Stock
Exchange or the American Stock Exchange, the fair market value shall be the
closing sales price per share of the shares on the New York Stock Exchange or
the American Stock Exchange (as applicable) on the date immediately preceding
the date the Option is granted or such other determination is made (each, 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 quoted
on the Nasdaq National Market or the Nasdaq SmallCap Market of the Nasdaq
National Market but are not listed for trading on the New York Stock Exchange
or the American Stock Exchange, the fair market value shall be the closing
sales price per share for such stock (or the closing bid, if no sales were
reported) as quoted on such system on the date immediately preceding the
valuation date for which such information is available; or (ii) if the shares
of Common Stock are not listed or reported in any of the foregoing, then fair
market value shall be determined in good faith in accordance with the
applicable provisions of Section 20.2031‐2 of the Federal Estate Tax
Regulations, or in any other manner consistent with the Code and accompanying
regulations.  

8.         Option
Period and Limitations on the Right to Exercise Options.

            (a)        The
term of an Option (the "Option Period") shall be ten years from the
date of grant.  Initial Awards shall become exercisable as provided in Section
8(a)(i) below, and Annual Awards shall become exercisable as provided in
Section 8(a)(ii) below.  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.  The total number of shares that may be
acquired upon the exercise of an Initial Award or Annual Award shall be rounded
down to the nearest whole share.  No fractional shares shall be issued.  Any
Option or portion thereof not exercised before expiration of the Option Period
shall terminate.

            (i)         Initial
Awards.  Initial Awards that are granted upon consummation of an initial
public offering shall vest and become exercisable in full immediately upon the
date of grant.  Initial Awards that are granted after consummation of an
initial public offering and prior to January 26, 1999 shall vest and become exercisable in three equal installments on each of the first three anniversaries
of the date of grant.  Initial Awards that are granted after January 26, 1999 shall vest and become exercisable in three equal installments on the date
of grant and on each of the first and second anniversaries of the date of
grant.

            (ii)        Annual
Awards.  An Annual Award granted prior to the 1999 Annual Meeting of
Shareholders shall vest and become exercisable in three equal installments on
each of the first three anniversaries of the date of grant.  Commencing with
Annual Awards granted in conjunction with the 1999 Annual Meeting of
Shareholders and for each Annual Award granted thereafter, such Annual Award
shall vest and become exercisable in three equal installments on the date of
grant and on each of the first and second anniversaries of the date of grant.

(b)        No Option shall be exercised unless the
Director is, at the time of exercise, a nonemployee Director and has been a
Director continuously since the date the Option was granted.  Notwithstanding
the foregoing, the following provisions shall apply:

	
  4

  

(i)         With respect to Options granted on or
after the effective date of the Plan and prior to July 22, 2003, if a
Director's service on the Board terminates for any reason (including death),
that portion of any such Option which was exercisable immediately before such
termination may be exercised by the Director (or, in the event of his death, by
such person or persons as shall have acquired the right to exercise the Option
by will or the laws of intestate succession) at any time within 180 days
following the date of such termination, and after such 180-day period, such
Options shall terminate.

(ii)        With respect to Options granted on or
after July 22, 2003, if a Director's service on the Board terminates for any
reason (including death), that portion of any such Option which was exercisable
immediately before such termination may be exercised by the Director (or, in
the event of his death, by such person or persons as shall have acquired the
right to exercise the Option by will or the laws of intestate succession) until
the earlier of (A) the expiration of the 24-month period following the date of
such termination of service or (B) the close of the Option Period, and, after
such date, such Option will terminate.

            (c)        An
Option shall be exercised by giving written notice to the Administrator or its
designee at such time and place as the Administrator shall direct.  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
the payment of such purchase price.  Such payment shall be in the form of (i)
cash; (ii) delivery (by either actual delivery or attestation) of shares of
Common Stock owned by the Director at the time of exercise; (iii) shares of
Common Stock withheld upon exercise; (iv) delivery of written notice of
exercise to the Administrator 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; or (v) a combination
of such methods.  Shares of Common Stock tendered or withheld in payment upon
the exercise of an Option shall be valued at their fair market value on the
date of exercise, as determined in accordance with Section 7 herein. 

            (d)        A
Director or 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 as  a shareholder with respect to such shares unless and until
certificates for such shares are issued to him or them under the Plan.  A
certificate or certificates for shares of Common Stock acquired upon exercise
of an Option shall be issued in the name of the Director (or his beneficiary)
and distributed to the Director (or his beneficiary) as soon as practicable following
receipt of notice of exercise and payment of the purchase price.

9.         Nontransferability
of Options.

            (a)        An
Option shall not be transferable other than by will or the laws of intestate
succession, except as (i) may be otherwise provided in an individual option
agreement and (ii)  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 Director's lifetime only by him or by his guardian or legal
representative.

            (b)        To
the extent required by Rule 16b-3, shares of Common Stock acquired upon
exercise of an Option shall not, without the consent of the Administrator, be
disposed of by the Director until the expiration of six months after the date
the Option was granted. 

	
  5

  

 

 

10.       Certain Definitions.

            For
purposes of the Plan, the following terms shall have the meaning indicated:

            (a)        "Related
corporation" means any parent, subsidiary or predecessor of the
Corporation.

            (b)        "Parent"
or "parent corporation" shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations ending with the Corporation
if, at the time as of which a determination is being made, each corporation other
than the Corporation owns stock possessing fifty percent or more of the total
combined voting power of all classes of stock in another corporation in the
chain.

            (c)        "Subsidiary"
or "subsidiary corporation" means any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the
Corporation if, at the time as of which a determination is being made, each
corporation other than the last corporation in the unbroken chain owns stock
possessing fifty percent or more of the total combined voting power of all
classes of stock in another corporation in the chain.

            (d)        "Predecessor"
or "predecessor corporation" means a corporation which was a party to
a transaction described in Section 424(a) of the Code (or which would be
so described if a substitution or assumption under that section had occurred)
with the Corporation, or a corporation which is a parent or subsidiary of the
Corporation, or a predecessor of any such corporation.

11.       Stock Option
Agreement.

            The grant of any
Option under the Plan shall be evidenced by the execution of an agreement (the
"Agreement") between the Corporation and the Director.  Each such
Agreement shall set forth the date of grant of the Option, the Option Price,
the Option Period and any other applicable terms and conditions.

12.       Restrictions
on Shares.

            The Corporation
may impose such restrictions on any Options or shares issued pursuant to the
exercise of Options granted hereunder as it may deem advisable, including
without limitation restrictions under the Securities Act and the requirements
of any applicable self-regulatory organization and any blue sky or securities
laws applicable to such shares.  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 or to take any other action
unless such action is in compliance with applicable laws, rules and regulations
(including but not limited to the requirements of the federal securities laws). 
The Corporation may cause a restrictive legend to be placed on any certificate
issued pursuant to the exercise of an Option granted 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 to the Corporation. 

	
  6

  

 

 

13.       Amendment or Termination.

            The
Plan and any Option may be amended or terminated by action of the Board;
provided, that (i) amendment or termination of an Option shall not, without the
consent of a nonemployee Director, adversely affect the rights of such
nonemployee Director with respect to an outstanding Option held by such
nonemployee Director; and (ii) 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.  The term of the Plan shall end on the earlier of:  (i) the
effective date of termination of the Plan by the Board or (ii) the date that
Options have been granted to purchase all of the aggregate shares which are
available for Options hereunder.  Any Options outstanding at the end of the
term shall continue to be outstanding and exercisable for the remainder of the
applicable Option Period.

14.       Section 16(b)
Compliance.

            It is the general
intent of the Corporation that transactions under the Plan shall comply in all
respects with Rule 16b-3 under the Exchange Act, and, if any Plan provision is
later found not to be in compliance with Section 16 of the Exchange Act, the
provision shall be deemed null and void, and in all events the Plan shall be
construed in favor of Plan transactions meeting the requirements of Rule 16b-3
or successor rules applicable to the Plan.

15.       Applicable
Law.

            Except as
otherwise provided herein, the Plan shall be construed and enforced according
to the laws of the State of North Carolina, without regard to the principles of
conflicts of laws.

 

16.       Change of
Control.

            (a)        Notwithstanding
any other provision of the Plan to the contrary, in the event of a Change of
Control (as defined in Section 16(c) herein), all Options outstanding as of the
date of such Change of Control shall become fully exercisable, whether or not
then otherwise exercisable. 

            (b)        Notwithstanding
the foregoing, in the event of a merger, share exchange, reorganization or
other business combination affecting the Corporation or a related corporation,
the Administrator may, in its sole and absolute discretion, determine that any
or all Options granted pursuant to the Plan shall not become exercisable on an
accelerated basis, if the board of directors of 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 awards (in either case, with substantially similar terms 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 16(b), the
Committee shall be appointed by the Board of Directors, two-thirds of the
members of which shall have been directors of the Corporation prior to the
merger, share exchange, reorganization or other business combinations affecting
the Corporation or a related corporation. 

	
  7

  

            (c)        For
the purposes herein, a "Change of Control" shall be deemed to have
occurred on the earliest of the following dates: 

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

            (ii)        The
date the shareholders of the Corporation approve a definitive agreement (A) to
merge or consolidate the Corporation with or into another 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 (B) to sell or otherwise dispose of all or
substantially all the assets of the Corporation; or

            (iii)       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.

17.       No Right to
Continued Service.

            Nothing in the
Plan shall confer upon a Director any right to continue in the service of the
Corporation or a related corporation or to interfere in any way with the right
of the Corporation or related corporation to terminate a Director's service at
any time. Except as otherwise expressly provided in the Plan, all rights of the
Director under the Plan with respect to the unexercised portion of an Option
shall terminate immediately upon termination of the services of the Director
with the Corporation as a director.

18.       Unfunded
Plan; Retirement Plans.

	
  8

  

            (a)        Neither
a Director 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 related
corporation, including, without limitation, any specific funds, assets or other
property which the Corporation or any related corporation, in their discretion,
may set aside in anticipation of a liability under the Plan.  A Director shall
have only a contractual right to the Common Stock or amounts, if any, payable
under the Plan, unsecured by any assets of the Corporation or any related
corporation.  Nothing contained in the Plan shall constitute a guarantee that
the assets of such corporations shall be sufficient to pay any benefits to any
person.

            (b)        In no
event shall any amounts accrued, distributable or payable under the Plan be
treated as compensation for the purpose of determining the amount of contributions
or benefits to which any person shall be entitled under any retirement plan
sponsored by the Corporation or a related corporation that is intended to be a
qualified plan within the meaning of Section 401(a) of the Code.

	
  9

  

            IN WITNESS
WHEREOF, this Nonemployee Directors' Stock Option Plan of RF Micro Devices,
Inc., as amended and restated through June 13, 2003, has been executed in
behalf of the Corporation effective as of the 13th day of June, 2003.

                                                                                    RF
MICRO DEVICES, INC.

 

                                                

                                                                                    By:  /s/ROBERT
A. BRUGGEWORTH           

                                                                                    Name:
 Robert A. Bruggeworth                        

                                                                                    Title:
    President and CEO                               

Attest:

/s/ WILLIAM A.
PRIDDY                                

Secretary 

[Corporate Seal]

	
  10

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