MINDSPEED TECHNOLOGIES, INC
EXHIBIT 10.1
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 10.1</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">January&nbsp;31, 2007
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bradley W. Yates<BR>
Mindspeed Technologies, Inc.<BR>
4000 MacArthur Boulevard<BR>
Newport Beach, California 92660

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Brad,

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purpose of this letter is to document the decisions and agreements we have reached following
our discussions regarding the business opportunities and challenges facing Mindspeed, your personal
career plans and goals, and your commitment to our business.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In this regard we have reached the following set of agreements.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Your Commitment</B></U>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You will commit to continuing employment with Mindspeed through at least January&nbsp;31, 2009, and
should you choose to leave on or after that date you will give notice of your intent to leave at
least six months prior to your scheduled departure. Additionally, should you choose to leave, you
agree that you will assist in recruiting your successor and effecting a smooth transition and, for
twelve months following your departure, be available to provide consulting services of up to 30
hours per quarter to the Mindspeed Board, the Mindspeed executive team or your successor, as
mutually agreed to by you and Mindspeed without additional compensation. In addition, for twelve
months following your departure, you agree not to employ, solicit for employment or recommend for
employment any person employed by Mindspeed.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In recognition of this commitment Mindspeed agrees to the following financial and career
development terms.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Mindspeed&#146;s Financial Commitments</B></U>
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    <TD width="1%" nowrap align="left">1.</TD>
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    <TD>Mindspeed will pay you a cash retention bonus of $50,000 on or about February&nbsp;16, 2007
(contingent upon your being an employee on that date). In the event you terminate employment
voluntarily before January&nbsp;31, 2009 you agree to promptly repay to Mindspeed a portion of the
retention bonus equal to the dollar amount resulting from multiplying $50,000 by <B>x/y </B>where <B>x</B>
equals the number of days then remaining until January&nbsp;31, 2009 and <B>y </B>equals the number of
days in the period from the date of the bonus until January&nbsp;31, 2009. In addition, should you
continue to be employed by Mindspeed on January&nbsp;31, 2009, you will receive an additional bonus
equal to your then current annual base salary payable bi-weekly over the ensuing twelve months
in substantially equal installments per Mindspeed&#146;s normal pay practices.</TD>
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    <TD width="1%" nowrap align="left">2.</TD>
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    <TD>We will recommend to the Mindspeed Compensation Committee that it grant you a stock option
award under the Mindspeed Long Term Incentive Plan of 175,000 shares on or about February&nbsp;2,
2007 (contingent upon your continuing to be an employee as of the grant date). These options
will vest on a time-based schedule starting in the second year following the grant date, with
eight equal vesting traunches over the ensuing eight quarters with the first traunch vesting
on or about April&nbsp;30, 2008. Additionally, the option vesting schedule will include an
acceleration provision that stipulates that, if and when Mindspeed&#146;s stock price reaches or
exceeds $3.00 for a period of ten consecutive trading days, 100% of the options will
immediately vest in full on the first business day of the month following the last day of such
ten-day period; provided that, in the event you elect to leave Mindspeed on or prior to
January&nbsp;31, 2009, you agree to promptly pay to Mindspeed the amount of any economic benefit
realized by you as a result of the exercise of any portion of those options that would not
have vested as a result of your termination of employment but for such acceleration.</TD>
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    <TD>We will recommend to the Compensation Committee that it grant you a restricted stock award
under the Mindspeed Long Term Incentive Plan of 100,000 shares on or about February&nbsp;2, 2007
(contingent on your</TD>
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    <TD>continuing to be an employee of the Company on the grant date). These shares will vest on a
time-based schedule over two years, one-third a year from the grant date, and one-sixth per
quarter over the succeeding four quarters. Additionally, the share vesting schedule will
include an acceleration provision that stipulates that, if and when Mindspeed&#146;s stock price
reaches or exceeds $3.00 for period of ten consecutive trading days, 100% of the shares will
immediately vest in full on the first business day of the month following the last day of such
ten-day period; provided that, in the event you elect to leave Mindspeed on or prior to January
31, 2009, you agree to promptly pay to Mindspeed the amount of any economic benefit realized by
from any disposition of restricted shares that would not have vested as a result of your
termination of employment but for such acceleration.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you elect to leave Mindspeed after January&nbsp;31, 2009, you will be entitled to receive
benefit continuation at no cost to you for a period of twelve months from your last day of
work at Mindspeed. This period of benefit continuation will also include continued vesting of
your stock options. Mindspeed shall have the authority to delay the payment of amounts
related to such benefit continuation for six months following your last day of work and take
such other actions to the extent it deems necessary to comply with Section&nbsp;409A of the
Internal Revenue Code. In such event, any amounts which you would otherwise be entitled
during the six month period following your last day of work will be paid to you on the first
business day following the expiration of such six month period.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Career Development Commitments</B></U>
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    <TD width="1%" nowrap align="left">1.</TD>
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    <TD>Mindspeed agrees to move as quickly as reasonable to expand your scope of job
responsibilities to include an active role in strategy and business development.</TD>
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    <TD>We agree to make known to each of Mindspeed&#146;s outside Directors your desire for public
company Board service and to encourage each of those Directors to consider recommending you as
a potential candidate for director vacancies of which they become aware at other companies
(particularly those seeking qualified candidates for their compensation committee or
nominating/governance committee).</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sincerely,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">Raouf Y. Halim</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Dwight W. Decker</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Raouf Halim
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Dwight W. Decker
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chief Executive Officer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mindspeed Technologies, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mindspeed Technologies, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Accepted:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ <FONT style="font-variant: SMALL-CAPS">Bradley W. Yates</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;31, 2007</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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</DIV></TD>
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Bradley W. Yates
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Date
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