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  Exhibit 10.1    
    

 FORM OF PUBLIC COMPANY

STOCKHOLDER AGREEMENT  

        THIS STOCKHOLDER AGREEMENT (this "Agreement"), dated as of January 27, 2009, is
by and among NitroMed, Inc., a Delaware corporation ("Public Company") (only with respect to Section 2(b) and Section 10(q)),
Deerfield Private Design Fund, L.P., a Delaware limited partnership, Deerfield Private Design International, L.P., a British Virgin Islands limited partnership, Deerfield Special
Situations Fund, L.P., a Delaware limited partnership, Deerfield Special Situations Fund International Limited, a British Virgin Islands corporation, NTMD Parent Acquisition Corp.,
(collectively "Merger Partner"), and the undersigned stockholder ("Stockholder") of Public Company. 

        WHEREAS,
concurrently with the execution and delivery of this Agreement, Public Company, NTMD Acquisition, Corp., a Delaware corporation and a wholly owned subsidiary of Merger Partner
(the "Transitory Subsidiary"), and Merger Partner have entered into an Agreement and Plan of Merger, dated as of the date hereof (as it may be amended
or supplemented from time to time pursuant to the terms thereof, the "Merger Agreement"), which provides for the merger (the
"Merger") of the Transitory Subsidiary into Public Company in accordance with the terms of the Merger Agreement; 

        WHEREAS,
Stockholder is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of such number of shares of each class of capital stock of Public
Company as is indicated on the signature page of this Agreement; and 

        WHEREAS,
in consideration of the execution and delivery of the Merger Agreement by Merger Partner, Stockholder desires to agree to vote the Shares (as defined herein) over which
Stockholder has voting power so as to facilitate the consummation of the Merger; 

        NOW,
THEREFORE, in consideration of the foregoing, intending to be legally bound, the parties hereto hereby agree as follows: 

        1.    Certain Definitions.    

        (a)   Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement. For purposes of this Agreement, the following
terms shall have the following meanings: 

        "Constructive Sale" means with respect to any security, a short sale with respect to such security, entering into or acquiring an
offsetting derivative contract with respect to such security, entering into or acquiring a futures or forward contract to deliver such security or entering into any other hedging or other derivative
transaction that has the effect of either directly or indirectly materially changing the economic benefits or risks of ownership. 

        "Shares" means (i) all shares of capital stock of Public Company owned, beneficially or of record, by Stockholder as of the date
hereof, and (ii) all additional shares of capital stock of Public Company acquired by Stockholder, beneficially or of record, during the period commencing with the execution and delivery of
this Agreement and expiring on the Expiration Date (as such term is defined in Section 9 below). 

        "Transfer" means, with respect to any security, the direct or indirect assignment, sale, transfer, tender, exchange, pledge,
hypothecation, or the grant, creation or suffrage of a lien, security interest or encumbrance in or upon, or the gift, placement in trust, or the Constructive Sale or other disposition of such
security (including transfers by testamentary or intestate succession or otherwise by operation of law) or any right, title or interest therein (including, but not limited to, any right or power to
vote to which the holder thereof may be entitled, whether such right or power is granted by proxy or otherwise), or the record or beneficial ownership thereof, the offer to make such a sale, transfer,
Constructive Sale or other disposition, and each agreement, arrangement or understanding, whether or not in writing, to effect any of the foregoing. 

 

        2.    Transfer and Voting Restrictions With Respect to the Shares.    

        (a)   At
all times during the period commencing with the execution and delivery of this Agreement and expiring on the Expiration Date, Stockholder shall not, except as the
result of the death of Stockholder or as otherwise permitted by this Agreement, Transfer any of the Shares, or discuss, negotiate, make an offer or enter into an agreement, commitment or other
arrangement with respect thereto, unless the person to which such Shares are being Transferred shall have executed and delivered a counterpart of this Agreement and agreed pursuant thereto, for the
benefit of Merger Partner, to hold such Shares subject to all terms and conditions of this Agreement. 

        (b)   Stockholder
understands and agrees that if Stockholder attempts to Transfer, vote or provide any other person with the authority to vote any of the Shares other than in
compliance with this Agreement, Public Company shall not, and Stockholder hereby unconditionally and irrevocably instructs Public Company to not, (i) permit any such Transfer on its books and
records, (ii) issue a new certificate representing any of the Shares or (iii) record such vote, in each case, unless and until Stockholder shall have complied with the terms of this
Agreement. 

        (c)   Except
as otherwise permitted by this Agreement or by order of a court of competent jurisdiction, Stockholder will not commit any act that could restrict or affect
Stockholder's legal power, authority and right to vote all of the Shares then owned of record or beneficially by Stockholder or otherwise prevent or disable Stockholder from performing any of his, her
or its obligations under this Agreement. Without limiting the generality of the foregoing, except for this Agreement and as otherwise permitted by this Agreement, Stockholder will not enter into any
voting agreement with any person or entity with respect to any of the Shares, grant any person or entity any proxy (revocable or irrevocable) or power of attorney with respect to any of the Shares,
deposit any of the Shares in a voting trust or otherwise enter into any agreement or arrangement with any person or entity limiting or affecting Stockholder's legal power, authority or right to vote
the Shares in favor of the approval of the Proposed Transaction. 

        3.    Agreement to Vote Shares.    

        (a)   Prior
to the Expiration Date, at every meeting of the stockholders of Public Company called, and at every adjournment or postponement thereof, Stockholder (in
Stockholder's capacity as such) shall appear at the meeting or otherwise cause the Shares to be present thereat for purposes of establishing a quorum and, to the extent not voted by the persons
appointed as proxies pursuant to this Agreement, vote (i) in favor of adoption of the Merger Agreement and approval of the transactions contemplated thereby (collectively, the
"Proposed Transaction"), (ii) against the approval or adoption of any proposal made in opposition to, or in competition with, the Proposed
Transaction, and (iii) against any of the
following (to the extent unrelated to the Proposed Transaction): (A) any merger, consolidation or business combination involving Public Company or any of its subsidiaries other than the
Proposed Transaction; (B) any sale, lease or transfer of all or substantially all of the assets of Public Company or any of its subsidiaries; (C) any reorganization, recapitalization,
dissolution, liquidation or winding up of Public Company or any of its subsidiaries that is prohibited by the Merger Agreement; or (D) any other action that is a breach of any covenant,
representation or warranty or any other obligation or agreement of Public Company under the Merger Agreement or of Stockholder under this Agreement (each of (ii) and (iii), a
"Competing Transaction"). 

        (b)   If
Stockholder is the beneficial owner, but not the record holder, of the Shares, Stockholder agrees to take all actions necessary to cause the record holder and any
nominees to vote all of the Shares in accordance with Section 3(a). 

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        4.    Grant of Irrevocable Proxy.    

        (a)   Except
as set forth in Section 4(f) hereof, Stockholder hereby irrevocably (to the fullest extent permitted by law) grants to, and appoints, Merger Partner and
each of its executive officers and any of them, in their capacities as officers of Merger Partner (the "Grantees"), as Stockholder's proxy and
attorney-in-fact (with full power of substitution and re-substitution), for and in the name, place and stead of Stockholder, to vote the Shares, to instruct
nominees or record holders to vote the Shares, or grant a consent or approval in respect of such Shares in accordance with Section 3 hereof and, in the discretion of the Grantees with respect
to any proposed adjournments or postponements of any meeting of stockholders at which any of the matters described in Section 3 hereof is to be considered. 

        (b)   Stockholder
represents that any proxies heretofore given in respect of the Shares that may still be in effect are not irrevocable, and such proxies are hereby revoked. 

        (c)   Stockholder
hereby affirms that the irrevocable proxy set forth in this Section 4 is given in connection with the execution of the Merger Agreement, and that such
irrevocable proxy is given to secure the performance of the duties of Stockholder under this Agreement. Stockholder hereby further affirms that the irrevocable proxy is coupled with an interest and
may under no circumstances be revoked. Stockholder hereby ratifies and confirms all that such irrevocable proxy may lawfully do or cause to be done by virtue hereof. Such irrevocable proxy is executed
and intended to be irrevocable in accordance with the provisions of Section 212 of the Delaware General Corporation Law. 

        (d)   The
Grantees may not exercise this irrevocable proxy on any other matter except as provided above. Stockholder may vote the Shares on all other matters. 

        (e)   Merger
Partner may terminate this proxy with respect to Stockholder at any time at its sole election by written notice provided to Stockholder. 

        (f)    The
proxy set forth in this Section 4 shall terminate upon the termination of this Agreement in accordance with Section 9 hereof. 

        5.    No Solicitation.    Stockholder, in his, her or its capacity as a Stockholder, shall not directly or indirectly,
(a) solicit, initiate, encourage, induce or knowingly facilitate the communication, making, submission or announcement of any Acquisition Proposal or Acquisition Inquiry or take any action that
could reasonably be expected to lead to an Acquisition Proposal or Acquisition Inquiry, (b) engage in discussions or negotiations with any Person with respect to any Acquisition Proposal or
Acquisition Inquiry, (c) approve, endorse or recommend any Acquisition Proposal, or (d) enter into any letter of intent or similar document or any Contract contemplating or otherwise
relating to any Acquisition Transaction. 

        6.    Action in Stockholder Capacity Only.    Stockholder makes no agreement or understanding herein as a director or
officer of Public Company. Stockholder signs solely in Stockholder's capacity as a record holder and beneficial owner, as applicable, of Shares, and nothing herein shall limit or affect any actions
taken in Stockholder's capacity as an officer or director of Public Company. Nothing herein shall prevent or preclude an officer, director or manager of the Stockholder who is serving as a director of
Public Company from taking or not taking any action in his capacity as a director of Public Company. 

        7.    Representations and Warranties of Stockholder.    

        (a)   Stockholder
hereby represents and warrants to Merger Partner as follows: (i) Stockholder is the beneficial or record owner of the shares of capital stock of
Public Company indicated on the signature page of this Agreement free and clear of any and all pledges, liens, security interests, mortgage, claims, charges, restrictions, options, title defects or
encumbrances except as provided in 

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the
Voting Agreement; (ii) Stockholder does not beneficially own any securities of Public Company other than the shares of capital stock and rights to purchase shares of capital stock of Public
Company set forth on the signature page of this Agreement; (iii) Stockholder has full power and authority to make, enter into and carry out the terms of this Agreement and to grant the
irrevocable proxy as set
forth in Section 4; and (iv) this Agreement has been duly and validly executed and delivered by Stockholder and constitutes a valid and binding agreement of Stockholder enforceable
against Stockholder in accordance with its terms. Stockholder agrees to notify Merger Partner promptly of any additional shares of capital stock of Public Company of which Stockholder becomes the
beneficial owner after the date of this Agreement. 

        (b)   As
of the date hereof and for so long as this Agreement remains in effect, except for this Agreement or as otherwise permitted by this Agreement, Stockholder has full
legal power, authority and right to vote all of the Shares then owned of record or beneficially by Stockholder, in favor of the approval and authorization of the Proposed Transaction without the
consent or approval of, or any other action on the part of, any other person or entity (including, without limitation, any governmental entity). Without limiting the generality of the foregoing,
Stockholder has not entered into any voting agreement (other than this Agreement and the Voting Agreement) with any person with respect to any of the Shares, granted any person any proxy (revocable or
irrevocable) or power of attorney with respect to any of the Shares, deposited any of the Shares in a voting trust or entered into any arrangement or agreement with any person limiting or affecting
Stockholder's legal power, authority or right to vote the Shares on any matter (except, in each case, with respect to the Voting Agreement and the Voting Agreement). 

        (c)   The
execution and delivery of this Agreement and the performance by Stockholder of his, her or its agreements and obligations hereunder will not result in any breach or
violation of or be in conflict with or constitute a default under any term of any agreement, judgment, injunction, order, decree, law, regulation or arrangement to which Stockholder is a party and
which Stockholder is aware or by which Stockholder (or any of his, her or its assets) is bound and which Stockholder is aware, except for any such breach, violation, conflict or default which,
individually or in the aggregate, would not materially impair or materially adversely affect Stockholder's ability to perform his, her or its obligations under this Agreement or render inaccurate any
of the representations made by Stockholder herein. 

        (d)   Stockholder
understands and acknowledges that Public Company, the Transitory Subsidiary and Merger Partner are entering into the Merger Agreement in reliance upon
Stockholder's execution and delivery of this Agreement and the representations and warranties of Stockholder contained herein. 

        8.    Confidentiality.    Stockholder recognizes that successful consummation of the Proposed Transaction may be
dependent upon confidentiality with respect to the matters referred to herein. In this connection, pending public disclosure thereof, and so that Public Company may rely on the safe harbor provisions
of Rule 100(b)(2)(ii) of Regulation FD promulgated under the Exchange Act, Stockholder hereby agrees not to disclose or discuss such matters with anyone not a party to this Agreement
(other than its counsel and advisors, if any, and the officers, directors, counsel and advisors of Public Company) without the prior written consent of Public Company and Merger Partner, except for
disclosures Stockholder's counsel advises are required by applicable law, in which case Stockholder shall give notice of such disclosure to Public Company and Merger Partner as promptly as practicable
so as to enable Public Company and Merger Partner to seek a protective order from a court of competent jurisdiction with respect thereto. The parties understand and agree that to the extent required
by law Stockholder may make a filing on Schedule 13D (or an amended filing) concerning this Agreement and that such filing will not constitute a violation of this Section 8. 

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        9.    Termination.    This Agreement, including without limitation, Section 4, shall terminate and be of no
further force or effect whatsoever as of the earliest of (a) such date and time as the Merger Agreement shall have been validly terminated pursuant to the terms of Article 9 thereof,
(b) the Effective Time and (c) June 30, 2009 (the "Expiration Date"). 

        10.    Miscellaneous Provisions.    

        (a)    Amendments, Modifications and Waivers.    This Agreement may not be amended or modified except by an instrument
in writing signed on behalf of each of the parties hereto. Any agreement on the part of a party hereto to any waiver of any term or condition hereof shall be valid only if set forth in a written
instrument signed on behalf of such party. Such waiver shall not be deemed to apply to any term or condition other than that which is specified in such waiver. The failure of any party to this
Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 

        (b)    Entire Agreement.    This Agreement constitutes the entire agreement among the parties to this Agreement and
supersedes any prior understandings, agreements or representations by or among the parties hereto, or any of them, written or oral, with respect to the subject matter hereof. 

        (c)    Governing Law.    All matters arising out of or relating to this Agreement and the transactions contemplated
hereby (including without limitation its interpretation, construction, performance and enforcement) shall be governed by and construed in accordance with the internal laws of the State of Delaware
without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of laws of any jurisdictions
other than those of the State of Delaware. 

        (d)    Submission to Jurisdiction.    Each of the parties to this Agreement (i) consents to submit itself to
the exclusive personal jurisdiction of the Court of Chancery of the State of Delaware in any action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated
by this Agreement, (ii) agrees that all claims in respect of such action or proceeding may be heard and determined in such court, (iii) agrees that it shall not attempt to deny or defeat
such personal jurisdiction by motion or other request for leave from such court and (d) agrees not to bring any action or proceeding arising out of or relating to this Agreement or any of the
transaction contemplated by this Agreement in any other court. Each of the parties hereto waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives
any bond, surety or other security that might be required of any other party with respect thereto. Any party may make service on another party by sending or delivering a copy of the process to the
party to be served at the address
and in the manner provided for the giving of notices in Section 10(m) hereof. Nothing in this Section 10(d), however, shall affect the right of any party to serve legal process in any
other manner permitted by law. 

        (e)    WAIVER OF JURY TRIAL.    EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF ANY PARTY IN
THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT. 

        (f)    Attorneys' Fees.    In any action at law or suit in equity to enforce this Agreement or the rights of any of
the parties hereunder, the prevailing party in such action or suit shall be entitled to receive its reasonable attorneys' fees and all other reasonable costs and expenses incurred in such action or
suit. 

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        (g)    Assignment and Successors.    Except for any Transfer made in compliance with Section 2(a) hereof, no
party may assign any of its rights or delegate any of its performance obligations under this Agreement, in whole or in part, by operation of law or otherwise without the prior written consent of the
other parties, except that Merger Partner, without obtaining the consent of any other parties hereto, shall be entitled to assign this Agreement or all or any of its rights or obligations hereunder to
any one or more of its Affiliates. No assignment by Merger Partner under this Section 10(g) shall relieve Merger Partner of its obligations under this Agreement. Subject to the foregoing, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns, including, without limitation, Stockholder's
estate and heirs upon the death of Stockholder. Any purported assignment of rights or delegation of performance obligations in violation of this Section 10(g) shall be null and void. 

        (h)    No Third Party Beneficiaries.    This Agreement is not intended, and shall not be deemed, to confer any rights
or remedies upon any person other than the parties hereto and their respective successors and permitted assigns, or to otherwise create any third-party beneficiary hereto. 

        (i)    Cooperation.    Stockholder agrees to cooperate fully with Merger Partner and to execute and deliver such
further documents, certificates, agreements and instruments and to take such other actions as may be reasonably requested by Merger Partner to evidence or reflect the transactions contemplated by this
Agreement and to carry out the intent and purpose of this Agreement. Stockholder hereby agrees that Public Company and Merger Partner may publish and disclose in the Registration Statement and any
resale registration statement relating thereto (including all documents and schedules filed with the
SEC) and the Proxy Statement/Prospectus, such Stockholder's identity and ownership of Shares and the nature of such Stockholder's commitments, arrangements and understandings under this Agreement and
may further file this Agreement as an exhibit to the Registration Statement or in any other filing made by Public Company or Merger Partner with the SEC relating to the Proposed Transaction. 

        (j)    Severability.    Any term or provision of this Agreement that is invalid or unenforceable in any situation in
any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that
the court making such determination shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term
or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified.
In the event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term or provision with a valid and
enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term. 

        (k)    Time of Essence.    With regard to all dates and time periods set forth or referred to in this Agreement, time
is of the essence. 

        (l)    Specific Performance; Injunctive Relief.    The parties hereto acknowledge that Public Company and Merger
Partner shall be irreparably harmed and that there shall be no adequate remedy at law for a violation of any of the covenants or agreements of Stockholder set forth in this Agreement. Stockholder
accordingly agrees that, in addition to any other remedies that may be available to Public Company or Merger Partner, as applicable upon any such violation, such party shall have the right to enforce
such covenants and agreements by specific performance, 

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injunctive
relief or by any other means available to such party at law or in equity without posting any bond or other undertaking. 

        (m)    Notices.    All notices and other communications hereunder shall be in writing and shall be deemed duly
delivered (i) four business days after being sent by registered or certified mail, return receipt requested, postage prepaid, or (ii) one business day after being sent for next business
day delivery, fees prepaid, via a reputable nationwide overnight courier service, in each case to the intended recipient as follows: (A) if to Public Company or Merger Partner, to the address
provided in the Merger Agreement, including to the persons designated therein to receive copies, and (B) if to Stockholder, to Stockholder's address shown below Stockholder's signature on the
signature page hereof. 

        (n)    Counterparts and Signature.    This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original but all of which together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties hereto and delivered
to the other parties, it being understood that all parties need not sign the same counterpart. The exchange of copies of this Agreement of amendments thereto and of signature pages by facsimile
transmission or by email transmission in portable document format, or similar format, shall constitute effective execution and delivery of such instrument(s) as to the parties and may be used in lieu
of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or by email transmission in portable document format, or similar format, shall be deemed to be their
original signatures for all purposes. 

        (o)    Headings.    The headings contained in this Agreement are for convenience of reference only and shall not
affect in any way the meaning or interpretation of this Agreement. 

        (p)    Legal Representation.    This Agreement was negotiated by the parties with the benefit of legal representation
and any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any party shall not apply to any construction or interpretation thereof. 

        (q)    Termination of JHP and Archemix Agreements.    The Public Company represents to the Stockholder that on the
date hereof, each of (i) the Asset Purchase Agreement dated as of October 22, 2008 by and between the Public Company and JHP Pharmaceuticals, LLP and (ii) the Agreement and
Plan of Merger dated as of November 18, 2008 by and among the Public Company, Newport Acquisition Corp. and Archemix Corp. has been terminated in accordance with its terms. 

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        IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed as of the date first written above. 

					
	 DEERFIELD PRIVATE DESIGN FUND, L.P.	 	STOCKHOLDER:
	
 By:	
 	
  

 	
 	

  
	Name: James E. Flynn

Title: General Partner	 	Name:

Title:

 

 

					
	 DEERFIELD PRIVATE DESIGN

INTERNATIONAL, L.P.	 	

Address:
	
 By:	
 	
  

 	
 	
    

 
	Name: James E. Flynn	 	

  
	Title: General Partner	 	

  

 

 

					
	 DEERFIELD SPECIAL SITUATIONS FUND, L.P.	 	Telephone:  (      )       -            

Facsimile:  (      )       -            

E-Mail
Address:                                        
              
	By:	 	  

 	 	 
	Name: James E. Flynn

Title: General Partner	 	 

 

 

					
	 DEERFIELD SPECIAL SITUATIONS FUND INTERNATIONAL LIMITED	 	

Shares Beneficially Owned by Stockholder:
	
 By:	
 	
  

 	
 	
                   shares of Public Company Common Stock
	Name: James E. Flynn

Title: General Partner	 	                   Public Company Stock Options

 

 

					
	 NTMD PARENT ACQUISITION CORP.	 	 
	
 By:	
 	
  

 	
 	

 
	Name:

Title:	 	 	 	 

With
respect to Section 2(b) only: 

					
	 NITROMED, INC.:	 	 
	
  

  Name:

Title:	
 	

 

[Signature Page to Merger Partner Stockholder Agreement] 

Signatories
to Stockholder Voting Agreements 

	1.
	Deerfield
Special Situations Fund, L.P.  
	2.
	Deerfield
Special Situations Fund International Limited  
	3.
	HealthCare
Ventures V, LP  
	4.
	HealthCare
Ventures VI, LP 

[Signature Page to Merger Partner Stockholder Agreement] 

QuickLinks

Exhibit 10.1Exhibit 4.3

 

VITESSE SEMICONDUCTOR CORPORATION

Fiscal Year 2008 Executive Bonus Plan

 

1.                                      PURPOSE OF PLAN

 

The
purpose of this Vitesse Semiconductor Corporation Fiscal Year 2008 Executive
Bonus Plan (this “Plan”) is to
provide members of the executive staff of Vitesse Semiconductor Corporation, a
Delaware corporation, (the “Corporation”)
with the opportunity to earn incentive bonuses based on (a) the
Corporation’s attainment of specific financial performance objectives for the
2008 Fiscal Year (as defined below) and (b) the executive’s achievement of
designated personal goals during the 2008 Fiscal Year.

 

2.                                      DEFINITIONS

 

2.1                               “Adjusted EBITDA” means net income before interest,
expenses for taxes, depreciation, amortization, deferred stock compensation and
non-recurring professional fees.  The
Administrator may, from time to time, make other exceptions to the definition
as it deems appropriate with respect to unusual or non-recurring events such as
balance sheet adjustments, mergers, acquisitions, and divestitures.

 

2.2                               “Administrator” means the Compensation Committee of the
Board of Directors of the Corporation.

 

2.3                               “Base Salary” means a Participant’s Base Salary paid
(or deferred) in the 2008 Fiscal Year. 
Base Salary does not include bonuses or any form of compensation other
than salary.

 

2.4                               “Bonus” means the sum of a Participant’s EBITDA
Bonus, if any, and his or her Goals Bonus, if any.

 

2.5                               “EBITDA Bonus” means the portion of a Participant’s
Bonus, if any, that is based on the Corporation’s level of Adjusted EBITDA for
the 2008 Fiscal Year.

 

2.6                               “EBITDA Factor” means the percentage determined pursuant
to Section 5.2.1 of this Plan, based on the level of the Corporation’s
Adjusted EBITDA.

 

2.7                               “Eligible Person” is (a) any “officer” as that term
is defined in Rule 16a-1(f) under the Securities Exchange Act of 1934
(except the President/Chief Executive Officer) or (b) any vice-president
or director level employee who is a member of the Corporation’s executive
staff.

 

2.8                               “Goals” means the individual personal performance
goals established by the Corporation’s Chief Executive Officer for each
Participant for the 2008 Fiscal Year.

 

1

 

2.9                               “Goals Bonus” means the portion of a Participant’s
Bonus, if any, that is based on both the Participant’s achievement of his or
her Personal Goals and the Corporation’s level of Adjusted EBITDA for the 2008
Fiscal Year.

 

2.10                        “Participant” means an Eligible Person who has been
designated by the Administrator as eligible to earn a Bonus for the 2008 Fiscal
Year.

 

2.11                        “2008 Fiscal Year” means the fiscal year of the Corporation
that began on October 1, 2007 and will end on September 30, 2008.

 

2.12                        “2009 Fiscal Year means the fiscal year of the Corporation
that will begin on October 1, 2008 and will end on September 30,
2009.

 

3.                                    PLAN ADMINISTRATION

 

3.1                               Administration. 
This Plan shall be administered by and all awards under this Plan shall
be authorized by the Administrator.

 

3.2                               Powers of the Administrator. 
Subject to the express provisions of this Plan, the Administrator is
authorized and empowered to do all things necessary or desirable in connection
with the authorization of awards and the administration of this Plan,
including, without limitation, the authority to:

 

(a)                                  determine the Eligible Persons and, from
among the Eligible Persons, designate those who are Participants;

 

(b)                                 approve the Goals established by the
Corporation’s Chief Executive Officer for each Participant;

 

(c)                                  determine and approve the amount of the
actual Bonus for each Participant; and

 

(d)                                 construe and interpret this Plan and any
agreements defining the rights and obligations of the Corporation and
Participants under this Plan, further define the terms used in this Plan, and
prescribe, amend and rescind rules and regulations relating to the
administration of this Plan or the Bonus payments under this Plan.

 

3.3                               Binding Determinations. 
Any action taken by, or inaction of, the Corporation, the Corporation’s
Chief Executive Officer, or the Administrator relating or pursuant to this Plan
and within its or his authority hereunder or under applicable law shall be
within the absolute discretion of that entity, person or body and shall be
conclusive and binding upon all persons. 
Neither the Corporation’s Chief Executive Officer, the Administrator,
nor any person acting at the direction thereof, shall be liable for any act,
omission, interpretation, construction or determination made in good faith in
connection with this Plan (or any award made under this Plan), and all such
persons shall be entitled to indemnification and reimbursement by the
Corporation in respect of any claim, loss, damage or 

 

2

 

expense
(including, without limitation, attorneys’ fees) arising or resulting therefrom
to the fullest extent permitted by law and/or under any directors and officers
liability insurance coverage that may be in effect from time to time.

 

3.4                               Reliance on Experts. 
In making any determination or in taking or not taking any action under
this Plan, the Administrator may obtain and may rely upon the advice of
experts, including employees and professional advisors to the Corporation.  No director, officer or agent of the
Corporation shall be liable for any such action or determination taken or made
or omitted in good faith.

 

3.5                               Delegation. 
The Administrator may delegate ministerial, non-discretionary functions
to individuals who are officers or employees of the Corporation or to third
parties.

 

4.                                    ELIGIBILITY

 

The
Administrator may grant Bonus opportunities under this Plan only to those
persons that the Administrator determines to be Eligible Persons.  The Administrator shall notify each
Participant of his or her eligibility to earn a Bonus under this Plan by the
later of February 15, 2008 or the 45th day following the date that the Participant
becomes an Eligible Person.  Such notice
shall be in writing and shall include a description of the Participant’s Goals.

 

5.                                    BONUS CALCULATIONS

 

5.1                               Goals

 

5.1.1                     Establishment. 
The Corporation’s Chief Executive Officer shall establish Goals for each
Participant by the later of February 15, 2008 or the 45th day following
the date the Participant becomes an Eligible Person.

 

5.1.2                     Adjustment. To preserve the intended incentives and
benefits of a Goal Bonus opportunity, the Chief Executive Officer may (i) adjust
the Goals to reflect any material change in corporate capitalization, any
material corporate transaction (such as a reorganization, combination,
separation, merger, acquisition or any combination of the foregoing), or any
complete or partial liquidation of the Corporation or (ii) make other
appropriate adjustments to the Goals.

 

5.1.3                     Determination of Achievement of
Goals.  The Corporation’s Chief Executive Officer
shall, in his or her sole discretion, determine the extent to which each
Participant has attained the Goals established for such Participant for the
2008 Fiscal Year, which shall be expressed as a whole percentage from 0% to
100%.  The Chief Executive Officer shall
make that determination within 90 days following the end of the 2008 Fiscal
Year and notify the Administrator and the Participant of that determination as
soon thereafter as practicable.

 

3

 

5.2                               EBITDA Bonus

 

5.2.1                     EBITDA Factor. 
As soon as practicable following the end of the 2008 Fiscal Year, the
Administrator shall determine the Corporation’s Adjusted EBITDA for the 2008
Fiscal Year and notify the Participants of that determination.  The EBITDA Factor shall be the percentage set
forth in Table I of Exhibit A for the highest level of Adjusted
EBITDA achieved by the Corporation, up to a maximum EBITDA Factor of 20%.  The EBITDA Factor shall not be adjusted for
levels of Adjusted EBITDA between the levels set forth in Table I.

 

5.2.2                     Determination of EBITDA Bonus. 
Each Participant’s EBITDA Bonus, if any, shall be an amount equal to the
EBITDA Factor multiplied by his or her Base Salary; provided, however, that
such EBITDA Bonus shall be pro rated for any Participant who is first employed
by the Corporation after October 1, 2007, to reflect the portion of the
2008 Fiscal Year during which he or she was a Participant.

 

5.3                               Goal Bonus.

 

Each Participant’s Goals Bonus, if any, shall be an
amount equal to (a) times (b) times (c), where (a) equals the
Participant’s Base Salary, (b) equals two (2) times the EBITDA Factor
and (c) equals the percentage of the Participants achievement of his or
her Goals; provided, however, that such Goal Bonus shall be pro rated for any
Participant who is first employed by the Corporation after October 1,
2007, to reflect the portion of the 2008 Fiscal Year during which he or she was
a Participant.

 

6.                                    VESTING

 

6.1                               Vesting. 
A Participant’s right to receive a Bonus under this Plan shall vest on September 30,
2008, subject to the employment and performance requirements set forth in this Section 6
(and subject to the levels of (a) the Participant’s achievement of Goals
and (b) the Company’s Adjusted EBITDA).

 

6.2                               Continued Employment Required. 
A Participant must continue to be employed by the Corporation without
performance deficiencies (as described in Section 6.5) until September 30,
2008 as a condition to vesting in the right to receive a Bonus payment under
this Plan.  Employment for only a portion
of the vesting period, even if a substantial portion, will not entitle the
Eligible Person to any proportionate vesting. 
An approved leave of absence by a Participant, either at the time of the
vesting date, or at any time during the vesting period, will not prevent
vesting of payments under the Plan.

 

6.3                               Effect of Termination Prior to
Vesting.  If a Participant’s employment with the
Corporation terminates for any reason before September 30, 2008, his or
her participation in the Plan will terminate immediately and he or she shall
not be eligible for a Bonus.

 

4

 

6.4                               Events Not Deemed Terminations of
Service.  Unless the express policy of the Corporation
or the Administrator otherwise provides, the employment relationship shall not
be considered terminated in the case of (a) sick leave, (b) military
leave, or (c) any other leave of absence authorized by the Corporation or
the Administrator; provided that, unless reemployment upon the expiration of
such leave is guaranteed by contract or law or the Administrator otherwise
provides, such leave is for a period of not more than three months.

 

6.5                               Effect of Performance
Deficiencies.  A Participant’s right to receive a Bonus will
not become vested if, (a) at the close of the 2008 Fiscal Year, the
Participant is on a Performance Improvement Plan, or (b) during the 2008
Fiscal Year, the Participant is otherwise notified that his or her job
performance is deficient and he or she has failed to correct the deficiencies
by the end of the 2008 Fiscal Year.

 

7.                                    TIME OF BONUS PAYMENTS.

 

Each Participant’s Bonus, if any, shall be paid in two
equal installments.  The first
installment shall be paid on or before the end of the second calendar quarter
of the 2009 Fiscal Year, and the second installment shall be paid on or after
the end of the fourth calendar quarter of the 2009 Fiscal Year.

 

8.                                    OTHER PROVISIONS

 

8.1                               Compliance with Laws. 
This Plan, the granting and vesting of awards under this Plan, and the
payment of money under this Plan are subject to compliance with all applicable
federal and state laws, rules and regulations (including but not limited
to state and federal securities law) and to such approvals by any listing,
regulatory or governmental authority as may, in the opinion of counsel for the
Corporation, be necessary or advisable in connection therewith.

 

8.2                               No Rights to Awards. 
No person shall have any claim or rights to be granted awards (or
additional awards, as the case may be) under this Plan, subject to any express
contractual rights (set forth in a document other than this Plan) to the
contrary.

 

8.3                               No Employment/Service Contract. 
Nothing contained in this Plan (or in any other documents under this
Plan) shall confer upon any Eligible Person or Participant any right to
continue in the employ or other service of the Corporation, constitute any
contract or agreement of employment or other service or affect an employee’s
status as an employee at will, nor shall interfere in any way with the right of
the Corporation to change a person’s compensation or other benefits, or to
terminate his or her employment or other service, with or without cause.  Nothing in this Section 8.3, however, is
intended to adversely affect any express independent right of such person under
a separate employment or service contract.

 

8.4                               Plan Not Funded. 
Awards payable under this Plan shall be payable from the general assets
of the Corporation and no special or separate reserve, fund or deposit shall be
made to assure payment of such awards. 
No Participant, 

 

5

 

beneficiary or
other person shall have any right, title or interest in any fund or in any
specific asset of the Corporation by reason of any award hereunder.  Neither the provisions of this Plan (or of
any related documents), nor the creation or adoption of this Plan, nor any
action taken pursuant to the provisions of this Plan shall create, or be
construed to create, a trust of any kind or a fiduciary relationship between
the Corporation and any Participant, beneficiary or other person.  To the extent that a Participant, beneficiary
or other person acquires a right to receive payment pursuant to any award
hereunder, such right shall be no greater than the right of any unsecured
general creditor of the Corporation.

 

8.5                               Tax Withholding. 
Upon any payment of any award, the Corporation shall deduct from any
amount otherwise payable in cash to the Participant (or the Participant’s
personal representative or beneficiary, as the case may be) the minimum amount
of any taxes which the Corporation may be required to withhold with respect to
such cash payment.

 

8.6                               Effective Date, Term, Amendments.

 

8.6.1       Effective Date and Term. 
This Plan is effective as of January 24, 2008, the date of its
approval by the Compensation Committee of the Board of Director of the
Corporation (the “Effective Date”) and shall be effective for the 2008 Fiscal
Year.  The Plan shall automatically
terminate upon the payment of the Bonuses due hereunder or, if no Bonuses are
payable hereunder, as of September 30, 2008.

 

8.6.2       Board Authorization. 
The Administrator may, at any time, amend this Plan; provided that no
amendment shall adversely affect any Participant’s opportunity to earn a Bonus
for the 2008 Fiscal Year.

 

8.7                               Governing Law; Construction;
Severability.

 

8.7.1       Choice of Law. 
This Plan and all other related documents shall be governed by, and
construed in accordance with the laws of the State of Delaware.

 

8.7.2       Severability. 
If a court of competent jurisdiction holds any provision invalid and
unenforceable, the remaining provisions of this Plan shall continue in effect.

 

8.8                               Captions. 
Captions and headings are given to the sections and subsections of this
Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of this Plan or any
provision thereof.

 

8.9                               Non-Exclusivity of Plan. Nothing in this Plan shall limit or be
deemed to limit the authority of the Board or the Administrator to grant any
award or authorize any other compensation, under any other plan or
authority.  Awards under this Plan may be
made in addition to, in combination with, as alternatives to or in 

 

6

 

payment of grants,
awards or commitments under any other plans or arrangements of the Corporation.

 

8.10                        No Corporate Action Restriction. 
The existence of this Plan shall not limit, affect or restrict in any
way the right or power of the Board or the stockholders of the Corporation to
make or authorize (a) any adjustment, recapitalization, reorganization or
other change in the capital structure or business of the Corporation, (b) any
merger, amalgamation, consolidation or change in the ownership of the Corporation,
(c) any issue of bonds, debentures, capital, preferred or prior preference
stock ahead of or affecting the capital stock (or the rights thereof) of the
Corporation, (d) any dissolution or liquidation of the Corporation, (e) any
sale or transfer of all or any part of the assets or business of the
Corporation, or (f) any other corporate act or proceeding by the
Corporation.  No Participant, beneficiary
or any other person shall have any claim under any grant of a Bonus opportunity
against any member of the Board or the Administrator, or the Corporation or any
employees, officers or agents of the Corporation, as a result of any such
action.

 

INWITNESS WHEREOF, this Plan is executed by its duly
authorized officer as of January 24, 2008.

 

	
   

  	
  VITESSE
  SEMICONDUCTOR CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Christopher Gardner

  
	
   

  	
   

  
	
   

  	
  Name

  	
  Christopher
  Gardner

  
	
   

  	
   

  
	
   

  	
  Title

  	
  Chief
  Executive Officer

  
					

 

7

 

EXHIBIT A

 

Table 1: 
Bonus Calculations based on EBITDA and Assuming All Goals Are Achieved
(as Percent of Base Salary)

 

	
  Adjusted EBITDA

  (M$)

  	
   

  	
  EBITDA Factor

  	
   

  	
  Goals Bonus with 100%

  of Goals Achieved

  	
   

  	
  Total Bonus with 100% of

  Goals Achieved

  	
   

  
	
  *

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  *

  	
   

  	
  2.0

  	
  %

  	
  4.0

  	
  %

  	
  6.0

  	
  %

  
	
  *

  	
   

  	
  5.0

  	
  %

  	
  10.0

  	
  %

  	
  15.0

  	
  %

  
	
  *

  	
   

  	
  7.5

  	
  %

  	
  15.0

  	
  %

  	
  22.5

  	
  %

  
	
  *

  	
   

  	
  10.0

  	
  %

  	
  20.0

  	
  %

  	
  30.0

  	
  %

  
	
  *

  	
   

  	
  12.5

  	
  %

  	
  25.0

  	
  %

  	
  37.5

  	
  %

  
	
  *

  	
   

  	
  15.0

  	
  %

  	
  30.0

  	
  %

  	
  45.0

  	
  %

  
	
  *

  	
   

  	
  17.5

  	
  %

  	
  35.0

  	
  %

  	
  52.5

  	
  %

  
	
  *

  	
   

  	
  20.0

  	
  %

  	
  40.0

  	
  %

  	
  60.0

  	
  %

  

 

*
Indicates that certain information contained herein has been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been request with
respect to the omitted portions.

 

8

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