Restricted Stock Award Agreement (Performance-Based and Service-Based Award)
Exhibit 10.42
2003 STOCK INCENTIVE PLAN
OF RF MICRO DEVICES, INC.
OF RF MICRO DEVICES, INC.
Restricted Stock Award Agreement
(Performance-Based and Service-Based Award)
(Performance-Based and Service-Based Award)
THIS AGREEMENT (together with Schedule A, attached hereto, the “Agreement”), made effective as
of , 2007 (the “Effective Date”) between RF MICRO DEVICES, INC., a North Carolina
corporation (the “Corporation”), and XXXXXX, an employee of, or individual in service to,
the Corporation or a related entity (the “Participant”);
R E C I T A L S :
WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors has approved
the grant to the Participant of a contingent right to receive a restricted stock award (as defined
in Section 4, below, the “Award”) for shares of the Corporation’s common stock (the “Common Stock”)
issuable under the RF Micro Devices, Inc. 2003 Stock Incentive Plan, as amended (the “Plan”), the
grant of which Award is subject to the attainment of certain performance objectives and the vesting
of which Award is subject to certain service requirements, as further described in this Agreement;
NOW, THEREFORE, in furtherance of the purposes of the Plan, the Corporation and the
Participant hereby agree as follows:
1. Incorporation of Plan. The rights and duties of the Corporation and the
Participant under this Agreement shall in all respects be subject to and governed by the provisions
of the Plan, the terms of which are incorporated herein by reference. In the event of any conflict
between the provisions in the Agreement and those of the Plan, the provisions of the Plan shall
govern. Unless otherwise defined herein, capitalized terms in this Agreement shall have the same
definitions as set forth with the Plan.
2. Certain Defined Terms. The following terms used in this Agreement shall have the
meanings set forth in this Section 2:
| (a) | The “Award Date” is the date on which the Award is or may be granted to the Participant following the Administrator’s determination regarding whether all or a portion of the Performance Objectives have been attained and completion of such other action as may be necessary to complete the grant of the Award. | ||
| (b) | The “Effective Date” is the effective date of the Agreement, as stated above. | ||
| (c) | The “Participant” is XXXXXX. | ||
| (d) | “Performance Objectives” are the specific performance objectives identified by the Committee in the minutes of the Committee’s meeting dated May 1, 2007. |
| (e) | The “Performance Period” is the period beginning May 1, 2007 and ending at the close of the Corporation’s current fiscal year on March 29, 2008. | ||
| (f) | The “Restriction Period” is the period beginning on the Award Date and ending on such date or dates and occurrence of such conditions as described in Section 3 of Schedule A attached hereto. | ||
| (g) | The “Shares” shall be that number, if any, of shares of Common Stock subject to the Award which are or may be granted under this Agreement, as such number may be determined in accordance with Section 1 of Schedule A. |
3. Award Opportunity; Incorporation of the Terms of Schedule A of the Agreement.
| (a) | The Corporation hereby grants to the Participant an opportunity to be granted the Award for a certain number of shares of Common Stock (as defined above, the “Shares”) based upon the attainment of at least two and up to six of the Performance Objectives during the Performance Period. The number, if any, of shares of Common Stock subject to the Award shall be determined by the Administrator based on the achievement by the Corporation of the Performance Objectives. No Award of Shares is being granted at this time, and no Award shall be granted unless and until the Administrator, in its sole discretion and in accordance with the terms of the Plan and this Agreement, determines whether and to what extent the Award has been earned (including but not limited to determining whether and to what extent the Performance Objectives have been met), determines the number of Shares that shall be subject to the Award and takes any other action it deems necessary or advisable in order to complete the grant. | ||
| (b) | The Participant expressly acknowledges that the terms of Schedule A shall be incorporated herein by reference and shall constitute part of this Agreement. The Corporation and the Participant further acknowledge that the Corporation’s signature on the signature page hereof, and the Participant’s signature on the Grant Letter contained in Schedule A, shall constitute their acceptance of all of the terms of this Agreement. |
4. Grant of Restricted Stock Award. Subject to the terms of this Agreement and the
Plan, the Corporation shall grant the Participant a restricted stock award (the “Award”) for that
number of Shares of Common Stock as is determined in accordance with Schedule A if and only if a
minimum of two (and up to six) of the Performance Objectives are met during the Performance Period,
as further described in Schedule A. The number of Shares, if any, subject to the Award shall be
determined by the Administrator in its sole discretion in accordance with the Plan and this
Agreement (including Schedule A) following completion of the Performance Period. The Award Date
shall be May 1, 2008 or as soon as practicable after the end of the Performance Period and the
Administrator’s determination of the extent, if any, to which the Performance Objectives have been
met and the Award has been earned. The Corporation shall give notice to the Participant after the
Performance Period regarding whether the Award has been granted and the number of Shares subject to
the Award.
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5. Dividends and Voting Rights. The Participant or his legal representatives,
legatees or distributees shall not be deemed to be the holder of any Shares subject to the Award
and shall not have any dividend rights, voting rights or other rights as a shareholder unless and
until (and then only to the extent that) the Award has been earned and vested and certificates for
such Shares have been issued and delivered to him or them.
6. Vesting of Award.
| (a) | Subject to the terms of the Plan and the Agreement, the Shares subject to the Award shall be deemed vested, and such Shares shall be distributable as provided in Section 8 herein, upon such date or dates, and subject to such conditions, as are described in this Agreement, including Section 3 of Schedule A. Without limiting the effect of the foregoing, the Shares subject to the Award may vest in installments over a period of time, if so provided in Schedule A. The Participant expressly acknowledges that the Award shall vest only upon such terms and conditions as are provided in Schedule A of this Agreement and otherwise in accordance with the terms of the Plan. | ||
| (b) | The Administrator has sole authority to determine whether and to what degree the Award has been earned and vested and to interpret the terms and conditions of this Agreement and the Plan. |
7. Effect of Termination of Employment; Forfeiture of Award. Except as may be
otherwise provided in the Plan or the Agreement, in the event that the employment of the
Participant is terminated for any reason and the Award has not been earned and vested pursuant to
the terms of this Agreement, then the Award, to the extent not earned and vested as of the
Participant’s termination date, shall be forfeited immediately upon such termination, and the
Participant shall have no further rights with respect to the Award or the Shares underlying that
portion of the Award that has not yet been earned and vested. The Participant expressly
acknowledges and agrees that the termination of his employment shall (except as may otherwise be
provided in the Agreement) result in forfeiture of the Award and the Shares to the extent the Award
has not been earned and vested as of the date of his termination of employment or service.
8. Settlement of Award. The Award, if earned and vested in accordance with the terms
of the Agreement, shall be payable in whole shares of Common Stock. A certificate or certificates
for Shares subject to the Award shall be issued in the name of the Participant (or his beneficiary)
as soon as practicable after, and only to the extent that, the Award (or portion thereof) has
vested.
9. No Right of Continued Employment or Service. Nothing contained in this Agreement
or the Plan shall confer upon the Participant any right to continue in the employment or service of
the Corporation or a related entity or to interfere in any way with the right of the Corporation or
a related entity to terminate the Participant’s employment or service at any time. Except as
otherwise expressly provided in the Plan and this Agreement (including but not limited to Schedule
A), all rights of the Participant under the Plan with respect to the unearned or unvested portion
of his Award shall terminate upon the termination of employment or service of the Participant with
the Corporation or a related entity.
10. Nontransferability of Award and Shares. The Award shall not be transferable
(including by sale, assignment, pledge or hypothecation) other than by will or the laws of
intestate
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succession. The designation of a beneficiary does not constitute a transfer. The Participant
shall not sell, transfer, assign, pledge or otherwise encumber the Shares subject to the Award
until all conditions to vesting have been met.
11. Withholding; Tax Consequences. The Participant acknowledges that the Corporation
shall require the Participant to pay the Corporation the amount of any federal, state, local,
foreign or other 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 the Participant, and the Participant
agrees, as a condition to the grant of the Award, to satisfy such obligations. The Participant
acknowledges that the Corporation has no responsibility to take or refrain from taking any actions
in order to achieve a certain tax result for the Participant.
12. Administration. The authority to construe and interpret this Agreement and the
Plan, and to administer all aspects of the Plan, shall be vested in the Administrator, and the
Administrator shall have all powers with respect to this Agreement as are provided in the Plan.
Any interpretation of the Agreement by the Administrator and any decision made by it with respect
to the Agreement is final and binding.
13. Superseding Agreement; Binding Effect. This Agreement supersedes any statements,
representations or agreements of the Corporation with respect to the grant of the Award or any
related rights, and the Participant hereby waives any rights or claims related to any such
statements, representations or agreements. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective executors, administrators, next-of-kin,
successors and assigns. Except as may be otherwise provided in Section 18 of the Plan, this
Agreement does not supersede or amend any existing Change in Control Agreement, Inventions,
Confidentiality and Nonsolicitations Agreement, Employment Agreement or any other similar agreement
between the Participant and the Company, including, but not limited to, any restrictive covenants
contained in such agreements.
14. Governing Law. Except as otherwise provided in the Plan or herein, this Agreement
shall be construed and enforced according to 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.
15. Amendment and Termination; Waiver. Subject to the terms of the Plan and this
Agreement, this Agreement may be modified or amended only by the written agreement of the parties
hereto. Notwithstanding the foregoing, the Administrator shall have unilateral authority to amend
the Agreement (without Participant consent) to the extent necessary to comply with applicable law
or changes to applicable law (including but not limited to Code Section 409A). The waiver by the
Corporation of a breach of any provision of the Agreement by the Participant shall not operate or
be construed as a waiver of any subsequent breach by the Participant.
16. Notices. Except as may be otherwise provided by the Plan, any written notices
provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently
given if either hand delivered or if sent by fax or overnight courier, or by postage paid first
class mail. Notices sent by mail shall be deemed received three business days after mailed but in
no event later than the date of actual receipt. Notice may also be provided by electronic
submission, if and to the extent permitted by the Administrator. Notices shall be directed, if to
the Participant, at the
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Participant’s address indicated by the Corporation’s records, or if to the Corporation, at the
Corporation’s principal office, attention Treasurer, RF Micro Devices, Inc.
17. Severability. The provisions of this Agreement are severable and if any one or
more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions shall nevertheless be binding and enforceable.
18. Restrictions on Award and Shares. The Corporation may impose such restrictions on
the Award and any Shares issued pursuant to the Award 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 or state securities laws applicable to such Award or
Shares. Notwithstanding any other provision in the Plan or the Agreement to the contrary, the
Corporation shall not be obligated to issue, deliver or transfer shares of Common Stock, to make
any other distribution of benefits, or to 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 for Shares issued pursuant to the Award in such form as may be
prescribed from time to time by applicable laws and regulations or as may be advised by legal
counsel.
19. Counterparts; Further Instruments. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. The parties hereto agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the purposes and intent of
this Agreement.
IN WITNESS WHEREOF, this Agreement has been executed on behalf of the Corporation and by the
Participant effective as of the Effective Date stated on page one of this Agreement.
| RF MICRO DEVICES, INC. |
||||
| By: | /s/ Xxxxxx X. Xxxxxxxxxxx | |||
| Xxxxxx X. Xxxxxxxxxxx | ||||
| President and Chief Executive Officer | ||||
Attest:
/s/ Xxxxxxx Xxxxxx |
||
Secretary & Chief Financial Officer |
[Signature page of Participant to follow on Schedule A/Grant Letter]
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2003 Stock Incentive Plan of RF Micro Devices, Inc.
Restricted Stock Award Agreement
(Performance-Based and Service-Based Award)
Restricted Stock Award Agreement
(Performance-Based and Service-Based Award)
Schedule A/Grant Letter
1. Award Opportunity.
| (a) | Pursuant to the terms and conditions of the Corporation’s 2003 Stock Incentive Plan, as amended (the “Plan”), you (the “Participant”) are eligible to be granted a restricted stock award (the “Award”) for that number of Shares (the “Shares”) of Common Stock as may be determined pursuant to Section 1 herein. | ||
| (b) | No Award will be granted unless at least two of the Performance Objectives are met during the Performance Period. If two of the Performance Objectives are met, the Participant shall be granted an Award for the Threshold number of shares (50% of Target). If three of the Performance Objectives are met, the Participant shall be granted an Award for 75% of the Target number of shares. If four of the Performance Objectives are met, the Participant shall be granted an Award for 100% of the Target number of shares. If five of the Performance Objectives are met, the Participant shall be granted an Award for 125% of the Target number of shares. If all six of the Performance Objectives are met, the Participant shall be granted an Award for the Maximum number of shares (150% of Target). The Award shall not be granted until following the end of the Performance Period and then only if the terms and conditions described in the Agreement have been met. The actual number of shares which may be subject to the Award shall be as provided in Section 1(c), below. | ||
| (c) | Number of Shares Potentially Subject to Award: |
| Threshold Number of Shares (50% of Target): | ||||
| 75% of Target: | ||||
| Target Number of Shares (100% of Target): | ||||
| 125% of Target: | ||||
| Maximum Number of Shares (150% of Target): |
| (d) | The Performance Objectives must be met, if at all, during the Performance Period. The Administrator has sole discretion to determine if, and to what extent, any or all Performance Objectives are met and to interpret the other terms and conditions of this Agreement. |
2. Performance Objectives. The Performance Objectives for the Performance Period
applicable to the Participant pursuant to this Agreement are as specified in the minutes of the
meeting of the Compensation Committee of the Board of Directors of the Corporation held on May 1,
2007.
3. Vesting of Award. If the Award is granted in accordance into this Agreement, the
Award shall vest as follows:
| (i) | The Award shall be deemed vested with respect to fifty percent (50%) of the Shares subject to the Award on the Award Date, subject to the |
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| continued employment or service of the Participant with the Corporation or a related entity through such vesting date; | |||
| (ii) | The Award shall be deemed vested with respect to an additional twenty-five percent (25%) (for a total of seventy-five percent (75%)) of the Shares subject to the Award on the first anniversary of the Award Date, subject to the continued employment or service of the Participant with the Corporation or a related entity through such vesting date; and | ||
| (iii) | The Award shall be deemed vested with respect to an additional twenty-five percent (25%) (for a total of one hundred percent (100%)) of the Shares subject to the Award on the second anniversary of the Award Date, subject to the continued employment or service of the Participant with the Corporation or a related entity through such vesting date. |
By my signature below, I, the Participant, hereby acknowledge receipt of this Grant Letter and
the Restricted Stock Award Agreement (the “Agreement”) effective as of , 200_,
between the Participant and the Corporation which is attached to this Grant Letter. I understand
that the Grant Letter and other provisions of Schedule A herein are incorporated by reference into
the Agreement and constitute a part of the Agreement. By my signature below, I further agree
to be bound by the terms of the Plan and the Agreement, including but not limited to the terms of
this Grant Letter and the other provisions of Schedule A contained herein. The Corporation
reserves the right to treat the Award and the Agreement as cancelled, void and of no effect if the
Participant fails to return a signed copy of the Grant Letter within 30 days of receipt.
| Signature: | Date: |
Note: If there are any discrepancies in the name or address shown above, please make the
appropriate corrections on this form. Please retain a copy of the Agreement, including this Grant
Letter, for your files.
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