Document:

Resale Registration Rights Agreement

 Exhibit 4.3 
  

RESALE REGISTRATION RIGHTS AGREEMENT 
  
 between 
  
 VITESSE SEMICONDUCTOR CORPORATION 
  
 and 
  
 LEHMAN BROTHERS INC. 
  
 DATED AS OF SEPTEMBER 22, 2004 

  
 RESALE
REGISTRATION RIGHTS AGREEMENT, dated as of September 22, 2004 between Vitesse Semiconductor Corporation, a Delaware corporation (together with any successor entity, herein referred to as the
“Company”), and Lehman Brothers Inc. (the “Initial Purchaser”). 
  
 Pursuant to the Purchase Agreement, dated September 16, 2004, between the Company and the Initial Purchaser (the “Purchase Agreement”),
the Initial Purchaser has agreed to purchase from the Company $90,000,000 (up to $100,000,000 if the Initial Purchaser exercises its option in full) in aggregate principal amount of the Company’s 1.50% Convertible Subordinated Debentures due
2024 (the “Debentures”). The Debentures will be convertible into fully paid, nonassessable shares of common stock, par value $0.01 per share, of the Company (the “Conversion Shares”) on the terms, and subject to the
conditions, set forth in the Indenture (as defined herein). To induce the Initial Purchaser to purchase the Debentures, the Company has agreed to provide the registration rights set forth in this Agreement. 
  
 The parties hereby agree as follows: 
  
 1. Definitions. As used in this Agreement, the following
capitalized terms shall have the following meanings: 
  
 Additional Interest: As defined in Section 3(a) hereof. 
  
 Additional Interest Payment Date: Each Interest Payment Date. 
  
 Affiliate: As such term is defined in Rule 405 under the Securities Act. 
  
 Agreement: This Resale Registration Rights Agreement,
as amended, modified or otherwise supplemented from time to time in accordance with the terms hereof. 
  
 Blue Sky Application: As defined in Section 6(a) hereof. 
  
 Broker-Dealer: Any broker or dealer registered under the Exchange Act. 
  
 Business Day: A day other than a Saturday or Sunday
or any day on which banking institutions in New York City are authorized or obligated by law or executive order to close. 
  
 Closing Date: The date of this Agreement. 
  

Commission: Securities and Exchange Commission. 
  
 Company: As defined in the preamble hereto. 
  
 Conversion Shares: As defined in the preamble hereto.

  
 Debentures: As defined in the preamble
hereto. 
  

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 Effectiveness Period: As defined in Section 2(a)(iii) hereof. 
  
 Effectiveness Target Date: As defined in Section
2(a)(ii) hereof. 
  
 Exchange Act:
Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder. 
  
 Holder: A Person who owns, beneficially or otherwise, Transfer Restricted Securities. 
  
 Indemnified Holder: As defined in Section 6(a)
hereof. 
  
 Indenture: The Indenture,
dated as of September 22, 2004, between the Company and U.S. Bank National Association, as trustee, pursuant to which the Debentures are to be issued, as such Indenture is amended, modified or supplemented from time to time in accordance with the
terms thereof. 
  
 Initial Purchaser: As
defined in the preamble hereto. 
  
 Interest
Payment Date: As defined in the Indenture. 
  
 Majority of Holders: Holders holding over 50% in aggregate principal amount of the Debentures outstanding at the time of determination in question; provided, however, that, for purposes of this definition, a holder of
Conversion Shares that constitute Transfer Restricted Securities when issued upon conversion of Debentures shall be deemed to hold an aggregate principal amount of Debentures (in addition to the principal amount of Debentures held by such holder)
equal to the product of (x) the number of such Conversion Shares held by such holder and (y) the prevailing conversion price, such prevailing conversion price as determined in accordance with Section [12] of the Indenture. 

 
 NASD: National Association of Securities Dealers,
Inc. 
  
 Person: An individual,
partnership, corporation, unincorporated organization, limited liability company, trust, joint venture or a government or agency or political subdivision thereof. 
  
 Prospectus: The prospectus included in a Shelf Registration Statement, as amended or supplemented by
any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such Prospectus. 
  
 Purchase Agreement: As defined in the preamble hereto. 
  
 Questionnaire: As defined in Section 2(b) hereof.

  
 Questionnaire Deadline: As defined in
Section 2(b) hereof. 
  

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 Record Holder: With respect to any Additional Interest Payment Date, each Person
who is a Holder of Transfer Restricted Securities on the record date with respect to the Interest Payment Date on which such Additional Interest Payment Date shall occur.  
  
 Registration Default: As defined in Section 3(a) hereof. 
  
 Sale Notice: As defined in Section 4(e) hereof.

  
 Securities Act: Securities Act of
1933, as amended, and the rules and regulations of the Commission thereunder. 
  
 Shelf Filing Deadline: As defined in Section 2(a)(i) hereof. 
  
 Shelf Registration Statement: As defined in Section 2(a)(i) hereof. 
  
 Suspension Notice: As defined in Section 4(c) hereof. 
  
 Suspension Period. As defined in Section 4(b)(i)
hereof. 
  
 TIA: Trust Indenture Act of
1939, as amended, and the rules and regulations of the Commission thereunder, in each case, as in effect on the date the Indenture is qualified under the TIA. 
  

Transfer Restricted Securities: Each Debenture and each Conversion Share issued upon conversion of the Debentures until the
earliest to occur of: 
  
 (i) the date on which
such Debenture or such Conversion Share issued upon conversion has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement; 
  
 (ii) the date on which such Debenture or such Conversion
Share (A) has been transferred in compliance with Rule 144 under the Securities Act or (B) may be sold or transferred pursuant to Rule 144 under the Securities Act without regard to the volume limitations thereof (or any other similar provision then
in force); and 
  
 (iii) the date on which such
Debenture or such Conversion Share issued upon conversion ceases to be outstanding (whether as a result of redemption, repurchase and cancellation, conversion or otherwise). 
  
 Trustee: As defined in Section 1.1 of the Indenture. 
  
 Underwritten Registration or Underwritten Offering: A
registration in which Debentures or Conversion Shares are sold to an underwriter for reoffering to the public. 
  

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 2. Shelf Registration. 
  
 (a) The Company shall: 
  
 (i) not later than 120 days after the date hereof (the “Shelf Filing Deadline”), cause to be filed a registration
statement pursuant to Rule 415 under the Securities Act (together with any amendments thereto, and including any documents incorporated by reference therein, the “Shelf Registration Statement”), which Shelf Registration Statement
shall provide for resales of all Transfer Restricted Securities held by Holders that have provided the information required pursuant to the terms of Section 2(b) hereof; 
  
 (ii) use its commercially reasonable efforts to cause the Shelf Registration Statement to be declared
effective by the Commission as promptly as is practicable but in no event later than 180 days after the date hereof (the “Effectiveness Target Date”); and 
  
 (iii) use its commercially reasonable efforts to keep the Shelf Registration Statement continuously
effective, supplemented and amended as required by the provisions of Section 4(b) hereof to the extent necessary to ensure that: (A) it is available for resales by the Holders of Transfer Restricted Securities entitled to the benefit of this
Agreement and (B) conforms with the requirements of this Agreement and the Securities Act, in each case, for a period (the “Effectiveness Period”) that will terminate upon the earliest of (x) the second anniversary of the last
original issuance of Debentures, (y) when all Transfer Restricted Securities registered under the Shelf Registration Statement have been sold in accordance with it or otherwise cease to be Transfer Restricted Securities in accordance with this
Agreement and (z) when all Transfer Restricted Securities have ceased to be outstanding (whether as a result of redemption, repurchase and cancellation, conversion or otherwise). 
  
 (b) To have its Transfer Restricted Securities included in the Shelf Registration Statement pursuant to this Agreement, each
Holder shall complete the Selling Securityholder Notice and Questionnaire, the form of which is contained in Exhibit A to this Agreement (the “Questionnaire”). The Company shall mail the Questionnaire to each Holder not less than 10
Business Days (but not more than 60 Business Days) prior to the time the Company intends in good faith to have the Shelf Registration Statement declared effective by the Commission. Holders are required to complete and deliver the Questionnaire to
the Company prior to or on the 20th Business Day after the date of a written request therefor by the Company (which request shall include a copy of the Questionnaire) (such deadline, the “Questionnaire Deadline”). Holders that do
not complete and deliver the Questionnaire will not be named as selling securityholders in the Prospectus. Prior to such time, each Holder may complete the Questionnaire and deliver it to the Company prior to such request and, as a result, shall be
entitled to have its Transfer Restricted Securities included in the initial Shelf Registration Statement filed with the Commission. In addition, upon receipt of written request for additional information from the Company, each Holder who intends to
be named as a selling securityholder in the Shelf Registration Statement shall furnish to the Company in writing, within 20 Business Days after such Holder’s receipt of such request, such additional information regarding such Holder and the
proposed distribution by such Holder of its Transfer Restricted Securities, in connection with the Shelf Registration Statement or Prospectus or Preliminary Prospectus 

  

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included therein and in any application to be filed with or under state securities law, as the Company may reasonably request. In connection with all such
requests for information from Holders of Transfer Restricted Securities, the Company shall notify such Holders of the requirements set forth in this paragraph regarding their obligation to provide the information requested pursuant to this Section.
Each Holder as to which the Shelf Registration Statement is being effected agrees to furnish promptly to the Company all information required to be disclosed in order to make information previously furnished to the Company by such Holder not
materially misleading. Upon receipt of a completed Questionnaire after the Questionnaire Deadline, the Company will as promptly as practicable, but in any event within 10 Business Days of receipt, file any amendments or supplements to the Shelf
Registration Statement to allow such Holder to be named as a selling Holder in the Prospectus included therein; provided, however, that the Company shall not be obligated to file (i) more than one such pre-effective amendment or supplement
for all Holders during any fiscal quarter and (ii) more than one post-effective amendment for all Holders during any semi-annual period, and provided further, in all such cases involving supplements or amendments (whether pre-effective or
post-effective), the Company shall only be obligated to make a filing when the principal amount of Debentures to be included in such amendment or supplement is more than $1 million. 
  
 3. Additional Interest. 
  
 (a) The Company and the Initial Purchaser agree that the Holders of Transfer Restricted Securities will suffer damages if
the Company fails to fulfill its obligations under Section 2 hereof and that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if: 
  
 (i) the Shelf Registration Statement is not filed with the Commission prior to or on the Shelf Filing
Deadline; 
  
 (ii) the Shelf Registration
Statement has not been declared effective by the Commission prior to or on the Effectiveness Target Date; 
  
 (iii) except as provided in Section 4(b)(i) hereof, the Shelf Registration Statement is filed and declared effective but, during the
Effectiveness Period, shall thereafter cease to be effective or fail to be usable for its intended purpose without such disability being cured within ten Business Days by an effective post-effective amendment to the Shelf Registration Statement, a
supplement to the Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act that cures such failure; or 
  
 (iv) (A) prior to or on the 45th or 60th day, as the case
may be, of any Suspension Period (as such term is defined herein), such suspension has not been terminated or (B) Suspension Periods exceed an aggregate of 90 days in any 360-day period, 
  
 (each such event referred to in foregoing clauses (i) through (iv), a “Registration Default”), the Company hereby agrees to
pay additional interest (“Additional Interest”) with respect to the Debentures that are Transfer Restricted Securities from and including the day following the 

  

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Registration Default to but excluding the day on which the Registration Default has been cured, accruing at the following rate: 
  
 (x) during the first 90-day period during which a
Registration Default shall have occurred and be continuing, at the rate of an additional 0.25% of the principal amount of the Debentures per year, and 
  
 (y) during the period commencing on the 91st day following the day the Registration Default shall have occurred and be continuing, at the rate of an additional 0.50% of the principal amount of the Debentures per year, 
  
 provided that in no event shall Additional Interest accrue at a rate
per year exceeding 0.50% of the principal amount of the Debentures. 
  
 No
Additional Interest shall be payable on any Debentures that have been converted into shares of our common stock. A Holder will not be entitled to Additional Interest unless it has provided all information requested by the Questionnaire prior to the
deadline specified therein. Following the cure of all Registration Defaults relating to any particular Debentures, the accrual of Additional Interest with respect to such Debentures shall cease. 
  
 (b) So long as any Debentures remain outstanding, the Company shall notify
the Trustee within two Business Days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid. Any amounts of Additional Interest due pursuant to clause (a) of this Section 3 will be payable
in cash semi-annually in arrears on each Additional Interest Payment Date, commencing with the first such date occurring after any such Additional Interest commences to accrue, to Holders to whom regular interest is payable on such Additional
Interest Payment Date with respect to Debentures that are Transfer Restricted Securities. All accrued Additional Interest shall be paid by the Company to Record Holders of Transfer Restricted Securities on each Additional Interest Payment Date by
wire transfer of immediately available funds or by federal bank check. The Company agrees to deliver all notices, certificates and other documents contemplated by the Indenture in connection with the payment of Additional Interest. 
  
 All obligations of the Company set forth in this Section 3 that are
outstanding with respect to any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations with respect to such Transfer Restricted Security shall have
been satisfied in full; provided, however, that Additional Interest shall cease to accrue on the day immediately prior to the date such Transfer Restricted Security ceases to be a Transfer Restricted Security. 
  
 The Additional Interest set forth above shall be the exclusive monetary
remedy available to the Holders of Transfer Restricted Securities for such Registration Default. 
  

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 4. Registration Procedures. 
  
 (a) In connection with the Shelf Registration Statement, the Company shall comply with all the provisions of Section 4(b)
hereof and shall use its commercially reasonable efforts to effect such registration to permit the sale of the Transfer Restricted Securities being sold in accordance with the intended method or methods of distribution thereof, and pursuant thereto,
shall expeditiously prepare and file with the Commission a Shelf Registration Statement relating to the registration on any appropriate form under the Securities Act. 
  
 (b) In connection with the Shelf Registration Statement and any Prospectus required by this Agreement to permit the sale or
resale of Transfer Restricted Securities, the Company shall: 
  
 (i) Subject to any notice by the Company in accordance with this Section 4(b) of the existence of any fact or event of the kind described in Section 4(b)(iii)(D), use its commercially reasonable efforts to keep the
Shelf Registration Statement continuously effective during the Effectiveness Period; upon the occurrence of any event that would cause any the Shelf Registration Statement or the Prospectus contained therein (A) to contain a material misstatement or
omission or (B) not be effective and usable for the resale of Transfer Restricted Securities during the Effectiveness Period, the Company shall file promptly an appropriate amendment to the Shelf Registration Statement, a supplement to the
Prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, in the case of clause (A), correcting any such misstatement or omission, and, in the case of either clause (A) or (B), use its
commercially reasonable efforts to cause any such amendment to be declared effective and the Shelf Registration Statement and the related Prospectus to become usable for their intended purposes as soon as practicable thereafter. Notwithstanding the
foregoing, the Company may suspend the effectiveness of the Shelf Registration Statement by written notice to the Holders for a period not to exceed an aggregate of 45 days in any 90-day period (each such period, a “Suspension
Period”), and not to exceed an aggregate of 90 days in any 360-day period if: 
  
 (x) an event occurs and is continuing as a result of which the Shelf Registration Statement would, in the Company’s reasonable
judgment, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and 
  
 (y) the Company reasonably determines that the disclosure of such event at such time would have a material
adverse effect on the business of the Company and its subsidiaries, taken as a whole; 
  
 provided, that in the event the disclosure relates to a previously undisclosed proposed or pending material business transaction, the disclosure of which would impede the Company’s ability to consummate
such transaction, the Company may extend a Suspension Period from 45 days to 60 days during any 90-day period. 
  

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 (ii) Prepare and file with the Commission such amendments and post-effective amendments
to the Shelf Registration Statement as may be necessary to keep the Shelf Registration Statement effective during the Effectiveness Period; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 under the Securities Act, and to comply fully with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by the Shelf Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in the Shelf Registration Statement or
supplement to the Prospectus. 
  
 (iii) Advise
the underwriter(s), if any, and selling Holders promptly (but in any event within five Business Days) and, if requested by such Persons, to confirm such advice in writing: 
  
 (A) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with
respect to the Shelf Registration Statement or any post-effective amendment thereto, when the same has become effective, 
  
 (B) of any request by the Commission for amendments to the Shelf Registration Statement or amendments or supplements to the Prospectus or
for additional information relating thereto, 
  
 (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration Statement under the Securities Act or of the suspension by any state securities commission of the qualification of the Transfer
Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes, or 
  
 (D) of the existence of any fact or the happening of any event, during the Effectiveness Period, that makes any statement of a material
fact made in the Shelf Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated by reference therein untrue, or that requires the making of any additions to or changes in the Shelf Registration
Statement or the Prospectus in order to make the statements therein not misleading. Each Holder of Debentures, by accepting the same, agrees to hold any communication from the Company pursuant to this Section 4(b)(iii) in confidence. 
  
 If at any time the Commission shall issue any stop order suspending the effectiveness of the
Shelf Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Securities under state securities or Blue Sky
laws, the Company shall use its 

  

 8 

 
commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time and will provide to the Initial Purchaser and
each Holder who is named in the Shelf Registration Statement prompt notice of the withdrawal of any such order. 
  
 (iv) Furnish to each of the underwriter(s), if any, and their respective counsel, if any, before filing with the Commission, a copy of the
Shelf Registration Statement and copies of any Prospectus included therein or any amendments or supplements to the Shelf Registration Statement or Prospectus (other than documents incorporated by reference after the initial filing of the Shelf
Registration Statement), which documents will be subject to the review of such underwriter(s) and counsel, for a period of at least five Business Days, and the Company will not file the Shelf Registration Statement or Prospectus or any amendment or
supplement to the Shelf Registration Statement or Prospectus (other than documents incorporated by reference) to which a selling Holder of Transfer Restricted Securities covered by the Shelf Registration Statement or the underwriter(s), if any,
shall reasonably object within five Business Days after the receipt thereof. The Company shall also furnish to each of the underwriter(s), if any, and their respective counsel, if any, before filing with the Commission, if reasonably practicable, or
otherwise promptly after filing with the Commission, copies of any amendments to the Shelf Registration Statement or supplements to the Prospectus (other than documents incorporated by reference after the initial filing of the Shelf Registration
Statement), and to make the Company’s representatives available for discussion of such amendments or supplements and make such changes in such amendments or supplements prior to the filing thereof, if reasonably practicable, or prepare and file
further amendments or supplements, as underwriter(s), if any, or their respective counsel, if any, may reasonably request subject to the provisos contained in the last sentence of Section 2(b) hereof. An objection by an underwriter or by counsel to
an underwriter shall be deemed to be a reasonable objection to such filing if the Shelf Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains a material misstatement or omission. 
  
 (v) Make available at reasonable times for inspection by one
or more representatives of the selling Holders, designated in writing by a Majority of Holders whose Transfer Restricted Securities are included in the Shelf Registration Statement, any underwriter participating in any distribution pursuant to the
Shelf Registration Statement, and any attorney or accountant retained by such selling Holders or any of the underwriter(s), all financial and other records, pertinent corporate documents and properties of the Company as shall be reasonably necessary
to enable them to exercise any applicable due diligence responsibilities, and cause the Company’s officers, directors, managers and employees to supply all information reasonably requested by any such representative or representatives of the
selling Holders, underwriter, attorney or accountant in connection with the Shelf Registration Statement after the filing thereof and before its effectiveness, provided, however, that any information designated by the Company as confidential
at the time of delivery of such 

  

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information shall be kept confidential by the recipient thereof; provided further, that in no event shall the Company be required to furnish any
material nonpublic information pursuant to this subsection (v). 
  
 (vi) If requested by any selling Holders or the underwriter(s), if any, promptly incorporate in the Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such
information as such selling Holders and underwriter(s), if any, may reasonably request to have included therein, including, without limitation: (A) information relating to the “Plan of Distribution” of the Transfer Restricted Securities,
(B) information with respect to the principal amount of Debentures or number of Conversion Shares being sold, (C) the purchase price being paid therefor and (D) any other terms of the offering of the Transfer Restricted Securities to be sold in such
offering; provided, however, that with respect to any information requested for inclusion by a selling Holder, this clause (vi) shall apply only to such information that relates to the Transfer Restricted Securities to be sold by such selling
Holder; and make all required filings of such Prospectus supplement or post-effective amendment as soon as reasonably practicable after the Company is notified of the matters to be incorporated in such Prospectus supplement or post-effective
amendment. 
  
 (vii) Furnish to each selling
Holder and each of the underwriter(s), if any, without charge, at least one copy of the Shelf Registration Statement, as first filed with the Commission, and of each amendment thereto (and any documents incorporated by reference therein or exhibits
thereto (or exhibits incorporated in such exhibits by reference) as such Person may request). 
  
 (viii) Deliver to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of the Prospectus (including
each preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; subject to any notice by the Company in accordance with this Section 4(b) of the existence of any fact or event of the kind described in
Section 4(b)(iii)(D), the Company hereby consents to the use of the Prospectus and any amendment or supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in connection with the offering and the sale of the
Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto. 
  
 (ix) If an underwriting agreement is entered into in connection with the registration, the Company shall: 
  
 (A) upon request, furnish to each selling Holder and each
underwriter, in such substance and scope as they may reasonably request and as are customarily made by issuers to underwriters in primary underwritten offerings for selling security holders, upon the date of closing of any sale of Transfer
Restricted Securities in an Underwritten Registration: 
  
 (1) a certificate, dated the date of such closing, signed by the Chief Financial Officer of the Company confirming, as of the date thereof, matters of the type set forth in Section 7(h) of the Purchase Agreement and
such other matters as such parties may reasonably request; 
  

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 (2) opinions, each dated the date of such closing, of counsel to the Company covering
such of the matters as are customarily covered in legal opinions to underwriters in connection with underwritten offerings of securities; and 
  
 (3) customary comfort letters, dated the date of such closing, from the Company’s independent accountants, in the customary form and
covering matters of the type customarily covered in comfort letters to underwriters in connection with primary underwritten offerings of securities; 
  
 (B) set forth in full in the underwriting agreement, if any, indemnification provisions and procedures which provide rights no less
protective than those set forth in Section 6 hereof with respect to all parties to be indemnified; and 
  
 (C) deliver such other documents and certificates as may be reasonably requested by such parties to evidence compliance with clause (A)
above and with any customary conditions contained in the underwriting agreement or other agreement entered into by the selling Holders pursuant to this clause (ix). 
  
 (x) Before any public offering of Transfer Restricted Securities, cooperate with the selling Holders, the
underwriter(s), if any, and their respective counsel in connection with the registration and qualification of the Transfer Restricted Securities under the securities or Blue Sky laws of such jurisdictions in the United States as the selling Holders
or underwriter(s), if any, may reasonably request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration Statement;
provided, however, that the Company shall not be required (A) to register or qualify as a foreign corporation or a dealer of securities where it is not now so qualified or to take any action that would subject it to the service of process in
any jurisdiction where it is not now so subject or (B) to subject itself to taxation in any such jurisdiction if it is not now so subject. 
  
 (xi) Cooperate with the selling Holders and the underwriter(s), if any, to facilitate the timely preparation and delivery of certificates
representing Transfer Restricted Securities to be sold and not bearing any restrictive legends (unless required by applicable securities laws) and enable such Transfer Restricted Securities to be in such denominations and registered in such names as

  

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the Holders or the underwriter(s), if any, may request at least two Business Days before any sale of Transfer Restricted Securities. 
  
 (xii) Use its commercially reasonable efforts to cause the
Transfer Restricted Securities covered by the Shelf Registration Statement to be registered with or approved by such other U.S. governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter(s),
if any, to consummate the disposition of such Transfer Restricted Securities. 
  
 (xiii) Subject to Section 4(b)(i) hereof, if any fact or event contemplated by Section 4(b)(iii)(D) hereof shall exist or have occurred, use its commercially reasonable efforts to prepare a supplement or
post-effective amendment to the Shelf Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted
Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made,
not misleading. 
  
 (xiv) Provide CUSIP numbers
for all Transfer Restricted Securities not later than the effective date of the Shelf Registration Statement and provide the Trustee under the Indenture with certificates for the Debentures that are in a form eligible for deposit with The Depository
Trust Company. 
  
 (xv) Cooperate and assist in
any filings required to be made with the NASD and in the performance of any due diligence investigation that is required to be retained in accordance with the rules and regulations of the NASD. 
  
 (xvi) Otherwise use its best efforts to comply with all
applicable rules and regulations of the Commission and all reporting requirements of the Exchange Act. 
  
 (xvii) Cause the Indenture to be qualified under the TIA not later than the effective date of the Shelf Registration Statement required by
this Agreement, and, in connection therewith, cooperate with the Trustee and the holders of Debentures to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the TIA, and
execute and use its commercially reasonable efforts to cause the Trustee thereunder to execute all documents that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such
Indenture to be so qualified in a timely manner. 
  
 (xviii) Cause all Transfer Restricted Securities covered by the Shelf Registration Statement to be listed or quoted, as the case may be, on each securities exchange or automated quotation system on which similar securities issued by the
Company are then listed or quoted. 
  

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 (xix) Provide promptly to each Holder upon written request each document filed with the
Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act after the effective date of the Shelf Registration Statement. 
  
 (xx) If reasonably requested by the underwriter(s), make appropriate officers of the Company reasonably available to the underwriter(s)
for meetings with prospective purchasers of the Transfer Restricted Securities and prepare and present to potential investors customary “road show” or marketing material in a manner consistent with other new issuances of other securities
similar to the Transfer Restricted Securities. 
  
 (c) Each Holder
agrees by acquisition of a Transfer Restricted Security that, upon receipt of any notice (a “Suspension Notice”) from the Company of the existence of any fact of the kind described in Section 4(b)(iii)(D) hereof, such Holder will,
and will use its reasonable efforts to cause any underwriter(s) in an Underwritten Offering to, forthwith discontinue disposition of Transfer Restricted Securities pursuant to the Shelf Registration Statement until: 
  
 (i) such Holder has received copies of the supplemented or
amended Prospectus contemplated by Section 4(b)(xiii) hereof; or 
  
 (ii) such Holder is advised in writing by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the
Prospectus. 
  
 If so directed by the Company, each Holder will deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that was current at the time of receipt of such notice of
suspension. 
  
 (d) Each Holder who intends to be named as a
selling Holder in the Shelf Registration Statement shall complete the Questionnaire and deliver it to the Company within 20 Business Days after the date of a written request therefor by the Company (which request shall include a copy of the
Questionnaire). Prior to such time, each Holder may complete the Questionnaire and deliver it to the Company prior to such request and, as a result, shall be entitled to have its Transfer Restricted Securities included in the initial Shelf
Registration Statement filed with the Commission. Holders who do not complete the Questionnaire and deliver it to the Company shall not be eligible to be named as selling securityholders in the Prospectus or preliminary Prospectus included in the
Shelf Registration Statement and, therefore, shall not be permitted to sell any Transfer Restricted Securities pursuant to the Shelf Registration Statement. Thereafter, upon receipt of a completed Questionnaire, the Company shall as promptly as
practicable, but in any event within ten Business Days of receipt of such Questionnaire, file any amendments or supplements to the Shelf Registration Statement to allow such Holder to be named as a selling Holder in the Prospectus included therein;
provided, however, that the Company shall not be obligated to file (i) more than one such pre-effective amendment or supplement for all Holders during any fiscal quarter and (ii) more than one 

  

 13 

 
post-effective amendment for all Holders during any semi-annual period, and provided further, in all such cases involving supplements or amendments
(whether pre-effective or post-effective), the Company shall only be obligated to make a filing when the principal amount of Debentures to be included in such amendment or supplement is more than $1 million. Any period of time during which the Shelf
Registration Statement or the related Prospectus ceases to be effective solely as a result of the Company’s compliance with the provisions of the preceding sentence shall not constitute a suspension of the Holder’s use of the Prospectus by
the Company and shall not diminish, in any way, the Company’s ability to suspend the Holder’s use of such Prospectus for a reasonable period not to exceed 45 days in any 90-day period or an aggregate of 90 days in any 360-day period as
described herein. In addition, each Holder who intends to be named as a selling Holder in the Shelf Registration Statement shall promptly respond to the Company by providing such other information as the Company may from time to time reasonably
request in writing regarding the Holder and the proposed distribution by such Holder of its Transfer Restricted Securities in connection with the Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. 
  
 (e) Upon the effectiveness of the Shelf Registration Statement, each Holder
shall provide the Company with a notice, in substantially the form attached hereto and to the offering memorandum as Exhibit 1 to Annex A, to the Trustee and the Company, at least three Business Days prior to any intended distribution of Transfer
Restricted Securities pursuant to the Shelf Registration Statement (a “Sale Notice”), which notice shall be effective for five Business Days. Each Holder of Transfer Restricted Securities, by accepting the same, agrees to hold any
communication by the Company in response to a Sale Notice in confidence. 
  
 5. Registration Expenses. 
  
 (a) All expenses incident to the Company’s performance of or compliance with this Agreement shall be borne by the Company regardless of whether a Shelf Registration Statement becomes effective, including, without
limitation: 
  
 (i) all registration and filing
fees and expenses (including filings made by any Initial Purchaser or Holders with the NASD); 
  
 (ii) all fees and expenses of compliance with federal securities and state Blue Sky or securities laws; 
  
 (iii) all expenses of printing (including printing of
Prospectuses and certificates for Conversion Shares to be issued upon conversion of the Debentures), messenger and delivery services and telephone; 
  
 (iv) all fees and disbursements of counsel to the Company and, subject to Section 5(b) below, the Holders of Transfer Restricted
Securities; 
  
 (v) all application and filing
fees in connection with listing (or authorizing for quotation) the Conversion Shares on a national securities exchange or automated quotation system pursuant to the requirements hereof; and 
  

 14 

 (vi) all fees and disbursements of independent certified public accountants of the
Company (including the expenses of any special audit and comfort letters required by or incident to such performance). 
  
 The Company shall bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal,
accounting or other duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company. 
  
 (b) In connection with the Shelf Registration Statement required by this Agreement, including any amendment or supplement thereto, and any other documents
delivered to any Holders, the Company shall reimburse the Initial Purchaser and the Holders of Transfer Restricted Securities being registered pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of
not more than one counsel (including local counsel), which shall be Latham & Watkins LLP, or such other counsel as may be chosen by a Majority of Holders for whose benefit the Shelf Registration Statement is being prepared. The Company shall not
be required to pay any underwriting discount, commission or similar fee related to the sale of any securities. 
  
 6. Indemnification and Contribution. 
  
 (a) The Company shall indemnify and hold harmless each Holder, such Holder’s officers, directors and employees and each person, if any, who controls
such Holder within the meaning of the Securities Act (each, an “Indemnified Holder”), from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability or action relating to resales of the Transfer Restricted Securities), to which such Indemnified Holder may become subject, insofar as any such loss, claim, damage, liability or action arises out of, or is based upon:

  
 (i) any untrue statement or alleged untrue
statement of a material fact contained in (A) the Shelf Registration Statement or Prospectus or any amendment or supplement thereto or (B) any blue sky application or other document or any amendment or supplement thereto prepared or executed by the
Company (or based upon written information furnished by or on behalf of the Company expressly for use in such blue sky application or other document or amendment on supplement) filed in any jurisdiction specifically for the purpose of qualifying any
or all of the Transfer Restricted Securities under the securities law of any state or other jurisdiction (such application or document being hereinafter called a “Blue Sky Application”); or 
  
 (ii) the omission or alleged omission to state therein any
material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, 
  
 and shall reimburse each Indemnified Holder promptly upon demand for any legal or other expenses reasonably incurred by such Indemnified
Holder in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such 

  

 15 

 
expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage,
liability or action arises out of, or is based upon, (A) any untrue statement or alleged untrue statement or omission or alleged omission made in the Shelf Registration Statement or Prospectus or amendment or supplement thereto or Blue Sky
Application or other document referred to in Section 6(a)(i) hereof in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Holder (or its related Indemnified Holder) specifically for use therein
or (B) the failure by the Holder or Indemnified Holder to deliver to any purchaser of its Transfer Restricted Securities the Prospectus and any supplement or amendment thereto in the form provided to such Holder or Indemnified Holder by the Company.
The foregoing indemnity agreement is in addition to any liability which the Company may otherwise have to any Indemnified Holder. 
  
 (b) Each Holder, severally and not jointly, shall indemnify and hold harmless the Company, its officers, directors and employees and each person, if any,
who controls the Company within the meaning of the Securities Act, from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof, to which the Company or any such officer, directors, employee or
controlling person may become subject, insofar as any such loss, claim, damage or liability or action arises out of, or is based upon: 
  
 (i) any untrue statement or alleged untrue statement of any material fact contained in the Shelf Registration Statement or Prospectus or
any amendment or supplement thereto or any Blue Sky Application or other document referred to in Section 6(a)(i) hereof; or 
  
 (ii) the omission or the alleged omission to state therein any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, 
  
 but in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company
by or on behalf of such Holder (or its related Indemnified Holder) specifically for use therein, and shall reimburse the Company and any such officer, employee or controlling person promptly upon demand for any legal or other expenses reasonably
incurred by the Company or any such officer, employee or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing
indemnity agreement is in addition to any liability which any Holder may otherwise have to the Company and any such officer, director, employee or controlling person. 
  
 (c) Promptly after receipt by an indemnified party under this Section 6 of notice of any claim or the commencement of any
action, the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 6, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however,
that the failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 6 except to the extent it has been materially prejudiced by such failure; and provided further, that the failure to
notify the indemnifying party shall not 

  

 16 

 
relieve it from any liability which it may have to an indemnified party otherwise than under this Section 6. If any such claim or action shall be brought
against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to
assume the defense thereof with counsel satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be
liable to the indemnified party under this Section 6 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that a
Majority of Holders shall have the right to employ a single counsel to represent jointly a Majority of Holders and their respective officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of
which indemnity may be sought by a Majority of Holders against the Company under this Section 6; and provided further, that if a Majority of Holders shall have reasonably concluded that there may be one or more legal defenses available to
them and their respective officers, employees and controlling persons that are different from or additional to those available to the Company and its officers, directors, employees and controlling persons, the fees and expenses of a single separate
counsel shall be paid by the Company. No indemnifying party shall: 
  
 (i) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld) settle or compromise or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding, or 
  

(ii) be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by
reason of such settlement or judgment. 
  
 (d) If the
indemnification provided for in this Section 6 shall for any reason be unavailable or insufficient to hold harmless an indemnified party under Section 6(a) or 6(b) in respect of any loss, claim, damage or liability (or action in respect thereof)
referred to therein, each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability (or action in respect
thereof): 
  
 (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company from the offering and sale of the Transfer Restricted Securities on the one hand and a Holder with respect to the sale by such Holder of the Transfer Restricted Securities on the
other, or 
  

 17 

 (ii) if the allocation provided by clause (6)(d)(i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 6(d)(i) but also the relative fault of the Company on the one hand and the Holders on the other in connection with the statements or omissions or
alleged statements or alleged omissions that resulted in such loss, claim, damage or liability (or action in respect thereof), as well as any other relevant equitable considerations. 
  
 The relative benefits received by the Company on the one hand and a Holder on the other with respect to such offering and such sale shall be
deemed to be in the same proportion as the total net proceeds from the offering of the Debentures purchased under the Purchase Agreement (before deducting expenses) received by the Company, on the one hand, bear to the total proceeds received by
such Holder with respect to its sale of Transfer Restricted Securities on the other. The relative fault of the parties shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company on the one hand or the Holders on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and each Holder agree that it would not be just and equitable if the amount of contribution pursuant to this Section 6(d) were determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to in the first sentence of this paragraph (d). The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof,
referred to above in this Section 6 shall be deemed to include, for purposes of this Section 6, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending or preparing to defend any such
action or claim. Notwithstanding the provisions of this Section 6, no Holder shall be required to contribute any amount in excess of the amount by which the total price at which the Transfer Restricted Securities purchased by it were resold exceeds
the amount of any damages which such Holder has otherwise been required to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute as provided in this Section 6(d) are several and not joint. 
  
 7. Rule 144A. 
  
 In the event the Company is not subject to Section 13 or 15(d) of the
Exchange Act, the Company hereby agrees with each Holder, for so long as any Transfer Restricted Securities remain outstanding, to make available to any Holder or beneficial owner of Transfer Restricted Securities in connection with any sale thereof
and any prospective purchaser of such Transfer Restricted Securities from such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144A. 
  

 18 

 8. Participation in Underwritten Registrations. 
  
 No Holder may participate in any Underwritten Registration hereunder unless
such Holder: 
  
 (i) agrees to sell such
Holder’s Transfer Restricted Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements; and 
  
 (ii) completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting
agreements, lock-up letters and other documents required under the terms of such underwriting arrangements. 
  
 9. Selection of Underwriters. 
  
 The Holders of Transfer Restricted Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted Securities
in an Underwritten Offering. In any such Underwritten Offering, the investment banker or investment bankers and manager or managers that will administer the offering will be selected by a Majority of Holders whose Transfer Restricted Securities are
included in such offering; provided, that such investment bankers and managers must be reasonably satisfactory to the Company. 
  
 10. Miscellaneous. 
  
 (a) Remedies. The Company acknowledges and agrees that any failure by the Company to comply with its obligations under Section 2 hereof may result
in material irreparable injury to the Initial Purchaser or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial
Purchaser or any Holder may obtain such relief as may be required to specifically enforce the Company’s obligations under Section 2 hereof. The Company further agrees to waive the defense in any action for specific performance that a remedy at
law would be adequate. 
  
 (b) Adjustments Affecting Transfer
Restricted Securities. The Company shall not, directly or indirectly, take any action with respect to the Transfer Restricted Securities as a class that would adversely affect the ability of the Holders of Transfer Restricted Securities to
include such Transfer Restricted Securities in a registration undertaken pursuant to this Agreement. 
  
 (c) No Inconsistent Agreements. The Company will not, on or after the date of this Agreement, enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. In addition, the Company shall not grant to any of its security holders (other than the Holders of Transfer
Restricted Securities in such capacity) the right to include any of its securities in the Shelf Registration Statement provided for in this Agreement other than the Transfer Restricted Securities. The Company has not previously entered into any
agreement (which has not expired or been terminated) granting any registration rights with respect to its securities to any Person which rights conflict with the provisions hereof. 
  

 19 

 (d) Amendments and Waivers. This Agreement may not be amended, modified or supplemented, and
waivers or consents to or departures from the provisions hereof may not be given, unless the Company has obtained the written consent of a Majority of Holders, or such greater percentage of the Holders as is required by the Indenture. 
  
 (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), telex, telecopier, or air courier guaranteeing overnight delivery: 
  
 (i) if to a Holder, at the address set forth on the records
of the registrar under the Indenture or the transfer agent of the Conversion Shares, as the case may be; and 
  
 (ii) if to the Company: 
  
 Vitesse Semiconductor Corporation 
 741
Calle Plano 
 Camarillo, California 93012 
 Attn: Chief Financial Officer 
  
 With a copy to: 
  
 Davis Polk & Wardwell

 1600 El Camino Real 
 Menlo
Park, California 94025 
 Attn: Martin A. Wellington 
  

All such notices and communications shall be deemed to have been duly given at: the time delivered by hand, if personally delivered; five Business Days
after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if transmitted by facsimile; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight
delivery. 
  
 (f) Successors and Assigns. This Agreement
shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including without limitation and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that (i) this Agreement shall not inure to the benefit of or be binding upon a successor or assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted Securities from such Holder and (ii) nothing
contained herein shall be deemed to permit any assignment, transfer or other disposition of Transfer Restricted Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Transfer
Restricted Securities, in any manner, whether by operation of law or otherwise, such Transfer Restricted Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Transfer Restricted Securities such
person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement. 
  

 20 

 (g) Counterparts. This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 (h) Securities Held by the Company or its Affiliates. Whenever the consent or approval of Holders of a specified
percentage of Transfer Restricted Securities is required hereunder, Transfer Restricted Securities held by the Company or its Affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required
percentage. 
  
 (i) Headings. The headings in this
Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  
 (j) Governing Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of New York. 
  
 (k) Severability. If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be
affected or impaired thereby. 
  
 (l) Entire Agreement.
This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein.
There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Transfer Restricted Securities. This Agreement
supersedes all prior agreements and understandings between the parties with respect to such subject matter. 
  
 (Signature Page Follows) 
  

 21 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

					
	VITESSE SEMICONDUCTOR CORPORATION
			
	BY	 	 	 	/s/    LOUIS R.
TOMASETTA        
	 	 	 Name:
	 	Louis R. Tomasetta
	 	 	 Title:
	 	President and Chief Executive Officer

  

					
	LEHMAN BROTHERS INC.
			
	By	 	 	 	/s/    KYLE T. RYLAND        
	 	 	 Name:
	 	Kyle T. Ryland
	 	 	 Title:
	 	Managing Director

  

 22 

  
 EXHIBIT A 

 
 TIME SENSITIVE MATERIAL 
  
 THIS NOTICE AND QUESTIONNAIRE MUST BE RETURNED TO VITESSE SEMICONDUCTOR CORPORATION (AT
THE ADDRESS LISTED BELOW) ON OR BEFORE THE 20TH BUSINESS DAY FOLLOWING DELIVERY OF THE NOTICE AND QUESTIONNAIRE BY VITESSE
SEMICONDUCTOR CORPORATION TO THE TRUSTEE AND THE REGISTERED HOLDER 
  
 Form of Selling Securityholder Notice and Questionnaire 
  
 The undersigned beneficial owner of 1.50% Convertible Subordinated Debentures due 2024 (CUSIP No. 928497 AC 0) (the “Debentures”) of Vitesse Semiconductor Corporation (the “Company”)
or shares of common stock, $0.01 par value per share, issuable upon conversion thereof (the “Conversion Shares” and together with the Debentures, the “Transfer Restricted Securities”) of the Company understands that
the Company has filed, or intends to file, with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-3 (the “Shelf Registration Statement”), for the registration and resale under
Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Transfer Restricted Securities in accordance with the terms of the Resale Registration Rights Agreement, dated as of September 22, 2004 (the
“Registration Rights Agreement”), between the Company and Lehman Brothers Inc. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below. All capitalized terms not
otherwise defined herein have the meaning ascribed thereto in the Registration Rights Agreement. 
  
 Each beneficial owner of Transfer Restricted Securities is entitled to the benefits of the Registration Rights Agreement. In order to sell or otherwise
dispose of any Transfer Restricted Securities pursuant to the Shelf Registration Statement, a beneficial owner of Transfer Restricted Securities generally will be required to be named as a selling securityholder in the related Prospectus, deliver a
Prospectus to purchasers of Transfer Restricted Securities and be bound by those provisions of the Registration Rights Agreement applicable to such beneficial owner (including certain indemnification provisions, as described below). Beneficial
owners are encouraged to complete and deliver this Notice and Questionnaire prior to the effectiveness of the Shelf Registration Statement so that such beneficial owners may be named as selling securityholders in the related prospectus at the time
of effectiveness. Upon receipt of a completed Notice and Questionnaire from a beneficial owner following the effectiveness of the Shelf Registration Statement, the Company will, as promptly as practicable, file such amendments to the Shelf
Registration Statement or supplements to the related prospectus as are necessary to permit such holder to deliver such prospectus to purchasers of Transfer Restricted Securities. The Company has agreed to pay additional interest pursuant to the
Registration Rights Agreement under certain circumstances as set forth therein. 
  
 Certain legal consequences arise from being named as a selling securityholder in the Shelf Registration Statement and the related Prospectus. Accordingly, holders and beneficial owners of Transfer Restricted
Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Shelf Registration Statement and the related Prospectus. 
  

 A-1 

 NOTICE 
  
 The undersigned beneficial owner (the “Selling Securityholder”) of Transfer Restricted Securities hereby gives notice to the Company of
its intention to sell or otherwise dispose of Transfer Restricted Securities beneficially owned by it and listed below in Item 3 (unless otherwise specified under Item 3) pursuant to the Shelf Registration Statement. The undersigned, by signing and
returning this Notice and Questionnaire, understands that it will be bound by the terms and conditions of this Notice and Questionnaire and the Registration Rights Agreement. 
  
 Pursuant to the Registration Rights Agreement, the undersigned has agreed to indemnify and hold harmless the Company, the
Company’s directors, the Company’s officers who sign the Shelf Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from
and against certain losses arising in connection with statements concerning the undersigned made in the Shelf Registration Statement or the related Prospectus in reliance upon the information provided in this Notice and Questionnaire. 
  
 Upon any sale of Transfer Restricted Securities pursuant to a Shelf
Registration Statement, the Selling Securityholder will be required to deliver to the Company and the trustee for the Debentures the Notice to Transfer (completed and signed) set forth in Exhibit 1 to this Notice and Questionnaire. 
  
 The undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete: 
  
 QUESTIONNAIRE 
  

					
	 1.
	 	Information Regarding Selling Securityholder
			
	 	 	 (a)
	 	Full legal name of Selling Securityholder:
			
	 	 	 	 	

			
	 	 	 (b)
	 	Full legal name of registered holder (if not the same as (a) above) through which Transfer Restricted Securities listed in Item (3) below are held:
			
	 	 	 	 	

			
	 	 	 (c)
	 	Full legal name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by the
questionnaire):
			
	 	 	 	 	

			
	 	 	 (d)
	 	Is the Selling Securityholder an SEC-reporting company? If the Selling Securityholder is not an SEC-reporting company, list below the individual or individuals who exercise dispositive powers
with respect to the Debentures, and the voting and/or dispositive powers with respect to the common stock underlying the Debentures:
			
	 	 	 	 	

  

 A-2 

					
		
	 (e)
	 	Are you a broker-dealer registered pursuant to Section 15 of the Exchange Act?
		
	 	 	  ̈   Yes.

		
	 	 	  ̈   No.

		
	 	 	Debenture: If yes, the SEC’s staff has indicated that you should be identified as an underwriter in the Shelf Registration Statement.
		
	 (f)
	 	If your response to Item 1(e) above is “no,” are you an “affiliate” of a broker-dealer registered pursuant to Section 15 of the Exchange Act?
		
	 	 	  ̈   Yes.

		
	 	 	  ̈   No.

		
	 	 	For purposes of this Item 1(f), an “affiliate” of a registered broker-dealer shall include any company that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such broker-dealer, and does not include any individuals employed by such broker-dealer or its affiliates.
		
	 (g)
	 	If you are an affiliate of a broker-dealer, do you certify that you bought the Transfer Restricted Securities to be resold, and at the time of the purchase of the Transfer
Restricted Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Transfer Restricted Securities?
		
	 	 	  ̈   Yes.

		
	 	 	  ̈   No.

		
	 	 	Debenture: If no, the SEC’s staff has indicated that you should be identified as an underwriter in the Shelf Registration Statement.
		
	 (h)
	 	Full legal name of person through which you hold the Transfer Restricted Securities – (i.e. name of your broker or the DTC participant, if applicable, through which your
Transfer Restricted Securities are held):

			
		
	 Name of broker:
	 	  

			
	 DTC No:  
	 	  

			
	 Contact person:  
	 	  

			
	 Telephone No. (including area code):  
	 	  

			
	 Email address:  
	 	  

  

 A-3 

					
	 2.
	 	Address for Notices to Selling Securityholder

			
		
	 Telephone:  
	 	  

			
	 Fax:
	 	  

			
	 Contact Person:  
	 	  

			
	 Email address:  
	 	  

  

							
	 3.
	 	Beneficial Ownership of Transfer Restricted Securities
			
	 	 	 (a)
	 	Type of Transfer Restricted Securities beneficially owned, and principal amount of Debentures or number of Conversion Shares of the Company, as the case may be, beneficially
owned:
				
	 	 	 	 	
	 	 
			
	 	 	 (b)
	 	CUSIP No(s). of such Transfer Restricted Securities beneficially owned:
				
	 	 	 	 	
	 	 

  

					
	 4.
	 	Beneficial Ownership of the Company’s Securities Owned by the Selling Securityholder
		
	 	 	Except as set forth below in this Item (4), the undersigned is not the beneficial or registered owner of any securities of the Company other than the Transfer Restricted
Securities listed above in Item (3) (“Other Securities”).
			
	 	 	 (a)
	 	Type and amount of Other Securities beneficially owned by the Selling Securityholder:
			
	 	 	 	 	

			
	 	 	 (b)
	 	CUSIP No(s). of such Other Securities beneficially owned:
			
	 	 	 	 	

  

					
	 5.
	 	Relationship with the Company
		
	 	 	Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has
had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.

			
		
	 State any exceptions here:  
	 	  

  

					
	 6.
	 	Short Positions:
		
	 	 	Do you currently have, or have you previously had, any open short positions with respect to the Company’s common stock?
		
	 	 	  ̈   Yes.

		
	 	 	  ̈   No.

  

 A-4 

					
		
	 	 	 The Company hereby advises you that, according to published interpretations, the SEC’s staff is of the view that short sales
cannot be made before the Shelf Registration Statement becomes effective because the shares underlying the short sale are deemed to be sold at the time such sale is made. There would, therefore, be a violation of Section 5 of the Securities Act of
1933, as amended, if the shares were effectively sold prior to the effective date.
  
 Selling Securityholders are hereby reminded that Regulation M of the Securities Exchange Act of 1934, as amended, prohibits certain activities by Selling Securityholders and certain other persons in connection with a distribution of
securities. Selling Securityholders are hereby advised to consult their own legal counsel with regard to these prohibitions.

  

					
	 7.
	 	Plan of Distribution

  
 Except as set
forth below, the undersigned (including its donees or pledgees) intends to distribute the Transfer Restricted Securities listed above in Item (3) pursuant to the Shelf Registration Statement only as follows (if at all). Such Transfer Restricted
Securities may be sold from time to time directly by the undersigned or, alternatively, through underwriters, broker-dealers or agents. If the Transfer Restricted Securities are sold through underwriters or broker-dealers, the Selling Securityholder
will be responsible for underwriting discounts or commissions or agent’s commissions. Such Transfer Restricted Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying
prices determined at the time of sale, or at negotiated prices. Such sales may be effected in transactions (which may involve crosses or block transactions): 

					
			
	 	 	 (i)
	 	on any national securities exchange or quotation service on which the Transfer Restricted Securities may be listed or quoted at the time of sale;
			
	 	 	 (ii)
	 	in the over-the-counter market;
			
	 	 	 (iii)
	 	in transactions otherwise than on such exchanges or services or in the over-the-counter market; or
			
	 	 	 (iv)
	 	through the writing of options.

  
 In connection
with sales of the Transfer Restricted Securities or otherwise, the undersigned may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Transfer Restricted Securities and deliver Transfer Restricted
Securities to close out such short positions, or loan or pledge Transfer Restricted Securities to broker-dealers that in turn may sell such securities. 
  

			
		
	 State any exceptions here:  
	 	  

	
	

  
 Debenture: In no event will such method(s) of distribution take the form of an underwritten offering of the Transfer Restricted Securities without the prior agreement of the Company. 
  

 A-5 

					
	 8.
	 	Acknowledgments

  
 The undersigned
acknowledges that it understands its obligation to comply with the provisions of the Securities Exchange Act of 1934, as amended, and the rules thereunder relating to stock manipulation, particularly Regulation M thereunder (or any successor rules
or regulations), in connection with any offering of Transfer Restricted Securities pursuant to the Shelf Registration Statement. The undersigned agrees that neither it nor any person acting on its behalf will engage in any transaction in violation
of such provisions. 
  
 The Selling Securityholder hereby
acknowledges its obligations under the Registration Rights Agreement to indemnify and hold harmless certain persons as set forth therein. Pursuant to the Registration Rights Agreement, the Company has agreed under certain circumstances to indemnify
the Selling Securityholders against certain liabilities. 
  
 In
accordance with the undersigned’s obligation under the Registration Rights Agreement to provide such information as may be required by law for inclusion in the Shelf Registration Statement, the undersigned agrees to promptly notify the Company
of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the Shelf Registration Statement remains effective. All notices hereunder and pursuant to the Registration Rights
Agreement shall be made in writing at the address set forth below. 
  
 By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to items (1) through (7) above and the inclusion of such information in the Shelf Registration Statement and the related
Prospectus. The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Shelf Registration Statement and the related Prospectus. 
  
 Once this Notice and Questionnaire is executed by the undersigned and
received by the Company, the terms of this Notice and Questionnaire, and the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal
representatives and assigns of the Company and the undersigned with respect to the Transfer Restricted Securities beneficially owned by the undersigned and listed in Item (3) above. 
  
 This Notice and Questionnaire shall be governed in all respects by the laws of the State of New York. 
  

 A-6 

 IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to
be executed and delivered either in person or by its duly authorized agent. 
  

					
	Beneficial Owner
		
	By:	 	 
	 	 	 Name:
 Title:
	 	 

  
 Dated: 
  
 PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO
VITESSE SEMICONDUCTOR CORPORATION NOT LATER THAN THE 20TH BUSINESS DAY AFTER THIS NOTICE AND QUESTIONNAIRE HAVE BEEN
DELIVERED TO THE TRUSTEE AND THE REGISTERED HOLDER AT: 
  
 Vitesse Semiconductor Corporation 
 741 Calle Plano 
 Camarillo, California 93012 
 Attn: Chief Financial Officer 
  

 A-7 

  
 EXHIBIT 1 

 
 NOTICE TO TRANSFER PURSUANT TO REGISTRATION STATEMENT 
  
 Vitesse Semiconductor Corporation 
 741 Calle Plano 
 Camarillo, California 93012 
  
 Re: Vitesse Semiconductor Corporation (the “Company”) 1.50% Convertible
Subordinated Debentures due 2024 (the “Debentures”) 
  
 Ladies and
Gentlemen: 
  
 Please be advised that
                     has transferred
$                     aggregate principal amount of the above-referenced Debentures of the Company or the common stock issued on
conversion of the Debentures (the “Common Stock”), pursuant to the Registration Statement on Form S-3 (File No.            ) filed by the Company. 
  
 We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied with respect to the transfer described above and the above named beneficial owner of the Debentures or the Common Stock is named as a selling securityholder in the prospectus dated
            , or in amendments or supplements thereto, and that the aggregate principal amount of the Debentures or number of the Common Stock transferred are [all or a portion of]
the Debentures or the Common Stock listed in such prospectus, as amended or supplemented, opposite such owner’s name. 
  

			
	 Very truly yours,
  
 [name]

		
	By:	 	 
	 	 	 (Authorized Signature)

  
 Dated: 
  

 A-8Amendment Number Four to Second Amended and Restated Creadit Agmt

 Exhibit 10.1 
  
 AMENDMENT NUMBER FOUR 
 TO 
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
  
 THIS AMENDMENT NUMBER FOUR TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
(this “Fourth Amendment”) is made as of December 6, 2004, by and among BANK OF AMERICA, N.A., a national banking association, and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (as successors by assignment from
Banc of America Strategic Solutions, Inc., a Delaware corporation, U.S. Bank National Association, a national banking association, and KeyBank National Association, a national banking association) (each individually a “Lender” and
collectively the “Lenders”), BANK OF AMERICA, N.A., as agent for Lenders (“Agent”), and FLOW INTERNATIONAL CORPORATION, a Washington corporation (“Borrower”). 
  
 RECITALS 
  
 A. Lenders, Agent and Borrower are parties to that certain Second Amended and Restated Credit Agreement dated as of July 28,
2003, as amended by that certain Amendment Number One to Second Amended and Restated Credit Agreement dated as of February 13, 2004, as amended by that certain Amendment Number Two to Second Amended and Restated Credit Agreement dated as of May 6,
2004, and as amended by that certain Amendment Number Three to Second Amended and Restated Credit Agreement dated as of July 28, 2004 (as amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit
Agreement”). 
  
 B. The Credit Agreement contains
covenants and restrictions binding upon Borrower, and it is known to Agent and Lenders that Borrower has failed to comply with certain reporting requirements in respect of the fiscal quarter ended July 31, 2004. 
  
 C. Borrower has requested that Agent and Lenders agree to (i) waive
Borrower’s compliance with certain reporting requirements in respect of the fiscal quarter ended July 31, 2004, (ii) increase the Letter of Credit Sublimit to $13,000,000, and (iii) make certain other amendments to the terms of the Credit
Agreement, each of which Agent and Lenders have agreed to do on the terms and conditions specified in this Fourth Amendment. 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 AGREEMENT 
  
 1. Definitions. Capitalized terms not otherwise defined in this Fourth Amendment shall have the meaning set forth in the Credit Agreement.

  
 2. Limited Waivers of Compliance and Default.

  
 (a) Reporting Requirements for Fiscal Quarter Ended
July 31, 2004. Subject to the terms and conditions of this Fourth Amendment, Agent and Lenders hereby (i) waive Borrower’s compliance with its obligations under Sections 6.9(b) and (f) of the Credit 

 Agreement for the fiscal quarter ended July 31, 2004 and (ii) waive any Events of Default under Sections 8.1(d) and (n)
of the Credit Agreement resulting from Borrower’s non-compliance with Sections 6.9(b) and (f) of the Credit Agreement for such fiscal quarter; provided, that Borrower shall deliver to Agent the unaudited financial statements and
Officer’s Certificates required by, and shall have otherwise fully complied with, Sections 6.9(b) and (f) in respect of the fiscal quarter ended July 31, 2004 no later than December 15, 2004. The failure of Borrower to comply with this Section
on or before December 15, 2004 shall be deemed an Event of Default under the Credit Agreement. 
  
 (b) Payment of Amendment Fee to Subordinated Noteholders. Subject to the terms and conditions of this Fourth Amendment, Agent and Lenders hereby waive Borrower’s compliance with its obligations under
Section 7.15 of the Credit Agreement for the limited purpose of allowing Borrower to make a one-time, non-refundable payment of Seventy-Five Thousand Dollars ($75,000) to the Subordinated Noteholders in consideration of the Subordinated Noteholders
agreement to amend the Subordinated Note Purchase Agreement in a manner consistent with this Fourth Amendment. 
  
 3. Delivery of Information Regarding Omax Case. Borrower agrees to deliver to Agent in sufficient copies for distribution to Agent and each Lender:
(a) no later than the first Business Day of each calendar quarter, a written report in such detail as Agent may reasonably require on the status and recent developments of the case Omax Corporation v. Flow International Corporation (the
“Omax Case”) described on Schedule 5.5 attached hereto; (b) promptly after the occurrence of any material development or event in the Omax Case, a written report in such detail as Agent may reasonably require describing of
such development or event; and (c) promptly upon Agent’s request, any and all information reasonably requested by Agent and Lenders regarding the Omax Case and the merits of such litigation. In addition, Borrower will cooperate with and assist
Agent and Lenders, and their respective counsel, in determining the likelihood of Borrower’s liability and the amount thereof in the Omax Case. Notwithstanding the foregoing, Borrower and its counsel shall have no duty or obligation to provide
Agent and/or Lenders with any information that Borrower or its counsel determines is or may be subject to attorney-client, work product or other privilege. 
  
 4. Amendments to Credit Agreement. 
  
 (a) Amendment to Section 2.7. Section 2.7 of the Credit Agreement is hereby deleted in its entirety and replaced with the following: 
  
 Section 2.7 Evidence of Debt. The Loans made by each
Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Agent in the ordinary course of business. The accounts or records maintained by the Agent and each Lender shall be conclusive proof of the amount of
the Loans made by the Lenders to the Borrower and the principal and interest payments made thereon, absent a showing of manifest error. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and
records of the Agent in respect of such matters, the accounts and records of the Agent shall control in the absence of manifest error. Any failure to maintain accounts or records or any error in doing so shall not, however, limit or affect the
obligation of the Borrower hereunder to pay any amount 

 owing with respect to the Obligations. Upon the request of any Lender made through the Agent, the
Borrower shall execute one or more notes (the “Notes”) substantially in the form of Exhibits A-1, A-2 or A-3 hereto, as applicable, which shall evidence such Lender’s Loans in addition to such accounts or
records. Each Lender is hereby authorized to record the date and amount of the Loans it makes and the date and amount of each payment of principal and interest thereon on a schedule annexed to and constituting part of the appropriate Note, account
or record. Any such recordation shall constitute prima facie evidence of the accuracy of the information so recorded; provided, however, the failure to make any such recordation shall not affect the obligations of Borrower hereunder or
under the Notes. The parties acknowledge that there are Notes outstanding made by the Borrower in favor of each Lender dated as of October 15, 2004, together equal to the amount of the Total Revolving Commitment in effect as of such date.

  
 (b) Amendment to Section 3.2(b). The first sentence of
subsection (b) of Section 3.2 of the Credit Agreement is hereby deleted and replaced with the following: 
  
 Borrower shall pay to Agent for the account of each Lender in accordance with its Pro Rata Share, a letter of credit fee equal to
the maximum amount available to be drawn on the outstanding standby Letters of Credit multiplied by (i) five percent (500 basis points) per annum for the period commencing on November 1, 2004 and ending on January 31, 2005, (ii) six percent
(600 basis points) for the period commencing on February 1, 2005 and ending on April 30, 2005, and (iii) seven percent (700 basis points) for the period commencing on May 1, 2005 and ending on August 1, 2005, which fee shall not be less than Two
Hundred Fifty Dollars ($250). 
  
 (c) Amendment to Section
3.2(c). In subsection (c) of Section 3.2 of the Credit Agreement, the reference to $5,000,000 is hereby deleted and replaced with $13,000,000. 
  
 (d) Amendment to Schedule 5.5. Schedule 5.5 attached to the Credit Agreement is hereby deleted and replaced with the Schedule 5.5
attached hereto. Borrower acknowledges and agrees that Agent and Lenders have not yet reached a judgment whether the Omax Case might reasonably be determined adversely to Borrower and, if determined adversely, would be likely to have a material
adverse effect on the financial condition or operations of Borrower. Agent and Lenders reserve the right to reach such a judgment at any time. Borrower acknowledges that Agent and/or Lenders are not waiving any rights they might otherwise have to
declare a default under Section 8.1(t), if Agent and/or Lenders conclude that the Omax Case might reasonably be determined adversely to Borrower and, if determined adversely, would be likely to have a material adverse effect on the financial
condition or operations of Borrower. 
  
 5. Conditions to
Effectiveness. Notwithstanding anything contained herein to the contrary, this Fourth Amendment shall not become effective unless and until each of the following conditions is fully and simultaneously satisfied: 
  
 (a) Delivery of Fourth Amendment. Borrower, Agent and each Lender
shall have executed and delivered counterparts of this Fourth Amendment to Agent. 

 (b) Payment of Fees. Borrower shall have paid to Agent: (i) an amendment fee in the amount
of Seventy-Five Thousand Dollars ($75,000) in respect of Bank’s agreement to amend the Credit Agreement as set forth herein, which fee shall be deemed fully earned and nonrefundable when paid; and (ii) if requested by Agent, any attorney’s
fees incurred by Agent and each Lender in connection with this Fourth Amendment. 
  
 (c) Consent of Domestic Guarantors. Each Domestic Guarantor shall have executed and delivered to Agent the subjoined Consent to Amendment (the “Guarantors’ Consent”). 
  
 (d) Representations True; No Default. Except as otherwise provided on
Schedule 1 attached hereto, the representations of Borrower as set forth in Article 5 of the Credit Agreement shall be true on and as of the date of this Fourth Amendment (except in the case of Section 5.19 of the Credit Agreement,
which representation and warranty was intended to be made only as of the date of the Credit Agreement and, in the case of Schedule 5.5, as updated by this Fourth Amendment) with the same force and effect as if made on and as of this date or,
if any such representation or warranty is stated to have been made as of or with respect to a specific date, as of or with respect to such specific date. No Event of Default and no event which, with notice or lapse of time or both, would constitute
an Event of Default, shall have occurred and be continuing or will occur as a result of the execution, delivery or performance of this Fourth Amendment. 
  
 (e) Subordinated Noteholders. Agent shall have received satisfactory evidence (which shall be determined in the Agent’s sole discretion) that
(i) the Subordinated Noteholders have waived any and all defaults under the Subordinated Note Purchase Agreement and the Subordinated Notes, (ii) the Subordinated Noteholders and Borrower have amended the Subordinated Note Purchase Agreement and the
Subordinated Notes to conform with the amendments made to the Credit Agreement through this Fourth Amendment, as applicable, and (iii) the Subordinated Noteholders have reviewed and consented in writing to this Fourth Amendment. 
  
 6. Reimbursement for Expenses. Borrower shall promptly reimburse Agent
and each Lender for all reasonable expenses incurred by Agent or either Lender in connection with this Fourth Amendment, including out-of-pocket expenses and reasonable attorneys’ fees. Borrower acknowledges and agrees that any and all
reasonable fees and expenses (including reasonable attorneys fees and expenses) incurred by Agent or either Lender in connection with their investigation of the Omax Case shall be reimbursed by Borrower pursuant to Section 6.11 of the Credit
Agreement. Borrower shall also promptly pay all other amounts due and owing, if any, under the Loan Documents. Without limiting the generality of the foregoing or implying that a greater amount would not be reimburseable under Section 6.11, Borrower
agrees to reimburse Agent and Lenders for reasonable attorneys’ fees incurred in making an initial evaluation of the merits of each party’s claims and defenses and the reasonable range of Borrower’s possible exposures, if any

  
 7. Post-Effective Date Conditions; Foreign Guarantor
Consent. Agent shall have received a duly executed counterpart of the subjoined Guarantors’ Consent from each Foreign Guarantor within sixty (60) days after the date of this Fourth Amendment. Failure to satisfy such conditions within sixty
(60) days after the date of this Fourth Amendment shall be an Event of Default. 

 8. Release and Waiver. Borrower ratifies and reconfirms the Loan Documents and all of its
obligations and liabilities thereunder and hereby waives and releases any and all defenses that either of them may now have or hereafter acquire with respect to the Loan Documents based on or otherwise relating to any events or circumstances which
occurred or existed on or prior to the date hereof. Borrower hereby releases and forever discharges Agent and Lenders, their respective affiliates, and their respective officers, directors, agents and employees from every claim, demand and cause of
action whatsoever, of every kind and nature, whether presently known or unknown, suspected or unsuspected, arising or alleged to have arisen or which shall arise hereafter from any act, omission or condition which occurred or existed on or prior to
the date of this Fourth Amendment. 
  
 9.
Representations and Warranties. Except as otherwise provided on Schedule 1 attached hereto, Borrower hereby represents and warrants to the Lenders and Agent that each of the representations and warranties set forth in Article 5 of the
Credit Agreement is true and correct in each case as if made on and as of the date of this Fourth Amendment (except in the case of the first sentence of Section 5.19 of the Credit Agreement, which representation and warranty was intended to
be made only as of the date of the Credit Agreement and, in the case of Schedule 5.5, as updated by this Fourth Amendment) and Borrower expressly agrees that it shall be an additional Event of Default under the Credit Agreement if any
representation or warranty made hereunder shall prove to have been incorrect in any material respect when made. 
  
 10. No Further Amendment. Except as expressly modified by the terms of this Fourth Amendment, all of the terms and conditions of the Credit
Agreement and the other Loan Documents shall remain in full force and effect and the parties hereto expressly reaffirm and ratify their respective obligations thereunder. 
  
 11. Reservation of Rights. Borrower acknowledges and agrees that the execution and delivery by Agent and the Lenders
of this Fourth Amendment shall not be deemed to create a course of dealing or otherwise obligate Agent or the Lenders to forbear or execute similar amendments under the same or similar circumstances in the future. 
  
 12. Governing Law. This Fourth Amendment shall be governed by
and construed in accordance with the laws of the State of Washington. 
  
 13. Counterparts. This Fourth Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original, and all of which
taken together shall constitute one and the same agreement. 
  
 14. Oral Agreements Not Enforceable. 
  
 ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment Number Four to Second Amended and
Restated Credit Agreement as of the date first above written. 
  

					
	BORROWER:                          	 	FLOW INTERNATIONAL CORPORATION
			
	 	 	By	 	  

	 	 	Name:	 	  

	 	 	Title:	 	  

		
	LENDERS:                                	 	BANK OF AMERICA, N.A.
			
	 	 	By	 	  

	 	 	Name:	 	  

	 	 	Title:	 	  

		
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION
			
	 	 	By	 	  

	 	 	Name:	 	  

	 	 	Title:	 	  

		
	AGENT:                                   
 	 	BANK OF AMERICA, N.A.
			
	 	 	By	 	  

	 	 	Name:	 	Ken Puro
	 	 	Title:	 	Vice President

 SCHEDULE 1 
  
 The representations and warranties referred to in Section 4(e) and Section 7 of the Fourth Amendment and contained in the
following sections of Article 5 of the Credit Agreement are qualified as specified below: 
  
 1. Section 5.2(b). The Guarantors’ Consent has not been approved or executed by the Foreign Guarantors and will not be approved or executed by the Foreign Guarantors prior to the date of the Fourth
Amendment. Delivery of the Guarantors’ Consent by the Foreign Guarantors is a post-closing obligation described further in Section 5 of the Fourth Amendment. 
  
 2. Section 5.6. In accordance with the terms of the applicable Loan Documents, Agent and Lenders do not have a first
perfected lien on or security interest in Collateral located in Sweden and do not have a first perfected lien on or security interest in certain real property and fixtures located in Taiwan. 

 SCHEDULE 5.5 
  
 LITIGATION 
  

	1.	Crucible Incident (June 29, 2002). 

  

	2.	Robotic Production Technology, Inc. v. Flow International Corporation, U.S. District Court, Eastern Division of Michigan, Case No. 99-74659. 

 

	3.	Omax Corporation v. Flow International Corporation, United States District Court, Seattle, Washington, Case Number CV04-2334, as previously disclosed to Agent and
Lenders by letter dated November 23, 2004. 

  

 CONSENT TO AMENDMENT 
  
 Each undersigned guarantor (each a “Guarantor”) is a guarantor of the indebtedness, liabilities and
obligations of Flow International Corporation, a Washington corporation (the “Borrower”) under that certain Second Amended and Restated Credit Agreement dated as of July 28, 2003 (as amended by amendments numbered one, two and three
(collectively, the “Amendments”), and as the same may be amended in the future from time to time, the “Credit Agreement”). All capitalized terms used but not defined in this consent shall have the meanings given
them in the Credit Agreement. 
  
 Each Guarantor acknowledges that
it has received a copy of the Credit Agreement (including without limitation, the Amendments) and each Guarantor consents to their contents and the other Loan Documents (notwithstanding that such consent is not required). Each Guarantor ratifies and
confirms that its guarantee of the obligations of Borrower remains in full force and effect. 
  
 Each Guarantor waives and releases any and all defenses that it may now have or hereafter acquire with respect to the Loan Documents based on or otherwise relating to any events or circumstances that occurred or
existed on or prior to the date of the Fourth Amendment. Each Guarantor also releases and discharges the Agent, the Lenders and their respective affiliates and their respective officers, directors, agents, and employees from every claim, demand, and
cause of action, whether presently known or unknown, suspected or unsuspected, that shall arise hereafter from any act, omission or condition that occurred or existed on or prior to the date of the Fourth Amendment. 
  
 This Consent may be executed in counterparts, each of which shall be deemed
an original and part of the same consent. 
  
 Washington Statutory
Notice: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. 
  
 [Signature pages to follow] 

 The Guarantors have caused this Consent to Amendment to be executed by their duly authorized officers or
representatives as of                     , 2004. 
  
 GUARANTORS: 
  

							
	 AVURE TECHNOLOGIES, INC.
	  	CIS ACQUISITION CORP.
				
	 By:
	 	  

	  	By:	 	  

	 Name:
	 	  

	  	Name:	 	  

	 Title:
	 	  

	  	Title:	 	  

		
	 FLOW WATER JET FLORIDA CORPORATION
	  	FLOW ASIA CORPORATION
				
	 By:
	 	  

	  	By:	 	  

	 Name:
	 	  

	  	Name:	 	  

	 Title:
	 	  

	  	Title:	 	  

		
	 FLOW EUROPE GmbH
	  	AVURE TECHNOLOGIES AB
				
	 By:
	 	  

	  	By:	 	  

	 Name:
	 	  

	  	Name:	 	  

	 Title:
	 	  

	  	Title:	 	  

		
	 FLOW HOLDINGS SAGL
	  	FLOW INTERNATIONAL FPS AB
				
	 By:
	 	  

	  	By:	 	  

	 Name:
	 	  

	  	Name:	 	  

	 Title:
	 	  

	  	Title:

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