Document:

VTSS-EX-10.14 (9.30.13)

EXHIBIT 10.14
AUTOMATIC EQUITY GRANT PROGRAM
FOR ELIGIBLE DIRECTORS UNDER THE
VITESSE SEMICONDUCTOR CORPORATION
2013 INCENTIVE PLAN
The following provisions set forth the terms of the Automatic Equity Grant Program (the “Program”) for eligible directors of Vitesse Semiconductor Corporation (the “Company”) under the Company’s 2013 Incentive Plan (the “Plan”). In the event of any inconsistency between the terms contained herein and in the Plan, the Plan shall govern.  All capitalized terms that are not defined herein have the meanings set forth in the Plan.
SECTION 1. ELIGIBILITY
Each member of the Board of Directors of the Company elected or appointed to the Board who is not otherwise an employee or officer of the Company or any Related Company (an “Eligible Director”) shall be eligible to receive Awards as set forth in the Program, subject to the terms of the Program.
SECTION 2. EQUITY GRANTS
2.1    Types and Timing of Grants
(a)    Initial Grants.  Subject to adjustment as provided in Section 15.1 of the Plan, upon an Eligible Director’s initial election or appointment to the Board as an Eligible Director, he or she shall automatically receive 14,000 Stock Units (the “Initial Grant”); provided, however, that a director who is also an employee of the Company or a Related Company but who subsequently ceases such employment status but remains a director shall not be eligible for an Initial Grant.
(b)    Annual Grants
(i)    Subject to adjustment as provided in Section 15.1 of the Plan, on the second Monday in January each year, each Eligible Director shall automatically receive 9,500 Stock Units (the “Annual Grant”); provided, however, that an Eligible Director who has not served as an Eligible Director continuously from the date of the previous year’s Annual Grant shall receive a prorated Award as set forth in (ii) below.
(ii)    Any individual who initially becomes an Eligible Director after the date of the previous year’s Annual Grant shall automatically be granted a pro-rated Annual Grant of Stock Units equal to the number of Stock Units obtained by multiplying 9,500 Stock Units (subject to adjustment as provided in Section 15.1 of the Plan) by a fraction, the numerator of which is the difference obtained by subtracting from twelve the number of whole calendar months that elapse from the date of the previous year’s Annual Grant through the date such person first becomes an Eligible Director and the denominator of which is twelve.
2.2    Vesting
(a)    Initial Grants. Each Initial Grant shall vest and become payable with respect to 1/3 of the Stock Units on each of the first three anniversaries of the Grant Date, subject to the Participant providing continuous service as a member of the Board of Directors through each applicable vesting date.
(b)    Annual Grants. Each Annual Grant shall vest and become payable with respect to 100% of the Stock Units on the first anniversary of their Grant Date, subject to the Participant providing continuous service as a member of the Board of Directors through that date.
SECTION 3. AMENDMENT, SUSPENSION OR TERMINATION
The Board may amend, suspend or terminate the Program or any portion of it at any time and in such respects as it deems advisable. Except as provided in the Plan, any such amendment, suspension or termination shall not, without the consent of the Participant, impair or diminish any rights of a Participant under an outstanding Award.

SECTION 4. EFFECTIVE DATE
The Program shall become effective on the Effective Date of the Plan.
Provisions of the Plan (including any amendments) that are not discussed above, to the extent applicable to Eligible Directors, shall continue to govern the terms and conditions of Awards granted to Eligible Directors.VTSS-EX-10.15 (9.30.13)

EXHIBIT 10.15

	
		
	

NONQUALIFIED STOCK OPTION GRANT
NOTICE (for U.S. Participants)
	

Vitesse Semiconductor Corporation 
ID:  77-0138960

	
			
	

NAME
ADDRESS
	

Grant Number:
Plan:
ID: 
	

2013 Incentive Plan

 

Vitesse Semiconductor Corporation (the "Company") has granted you an Option (the "Option") to purchase shares of the Company's Common Stock under the Company's 2013 Incentive Plan (the "Plan").  The Option is subject to all the terms and conditions set forth in this Nonqualified Stock Option Grant Notice (this "Grant Notice"), in the Nonqualified Stock Option Agreement and in the Plan, which are available on E-Trade and incorporated into this Grant Notice in their entirety.
    
	
					
	 
	Date of Grant:
	 

	 
	Total Shares Granted:
	 

	 
	Exercise Price per Share:
	 

	 
	Expiration Date:
	 

	 
	Vesting Commencement Date:
	 

	 
	Vesting and Exercisability Schedule:
	The Option shall vest and become exercisable according to the following schedule:

	 
	Period of Continuous Employment or Service With the Company or Related Companies From the Vesting Commencement Date
	

Portion of Total Option That Is 
Vested and Exercisable

	 
	After 1 year
	1/4th  of Total Shares Granted

	 
	After each additional one-month period of continuous service completed thereafter
	

An additional 1/48th  of Total Shares Granted

	 
	After 4 years
	100% of Total Shares Granted

Additional Terms/Acknowledgement:  By your online acceptance of Option, you acknowledge and agree that: as of the Grant Date, this Grant Notice, the Nonqualified Stock Option Agreement and the Plan set forth the entire understanding between you and the Company regarding the Option and supersede all prior oral and written agreements on the subject.

VITESSE SEMICONDUCTOR CORPORATION

Martin S. McDermut
Sr VP, Finance & CFO

VITESSE SEMICONDUCTOR CORPORATION
2013 INCENTIVE PLAN 
NONQUALIFIED STOCK OPTION AGREEMENT
(FOR U.S. PARTICIPANTS) 
Pursuant to your Nonqualified Stock Option Grant Notice (the “Grant Notice”) and this Nonqualified Stock Option Agreement (this “Agreement”), Vitesse Semiconductor Corporation has granted you an Option under its 2013 Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock indicated in your Grant Notice (the “Shares”) at the exercise price indicated in your Grant Notice. Capitalized terms not defined in this Agreement but defined in the Plan have the same definitions as in the Plan. The Plan shall control in the event there is any express conflict between the Plan and the Grant Notice or this Agreement and with respect to such matters as are not expressly covered in this Agreement. 
The details of the Option are as follows: 
1.Vesting and Exercisability. Subject to the limitations contained herein, the Option will vest and become exercisable as provided in your Grant Notice, except that, unless otherwise provided in the Grant Notice or this Agreement, vesting will cease upon your Termination of Service and the unvested portion of the Option will terminate. 
2.Securities Law Compliance. Notwithstanding any other provision of this Agreement, you may not exercise the Option unless the Shares issuable upon exercise are registered under the Securities Act or, if such Shares are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of the Option must also comply with other applicable laws and regulations governing the Option, and you may not exercise the Option if the Company determines that such exercise would not be in material compliance with such laws and regulations. 
3.Independent Tax Advice. You should obtain tax advice when exercising the Option and prior to the disposition of the Shares. 
4.Methods of Exercise. Subject to the provisions of this Agreement, the vested portion of the Option may be exercised, in whole or in part, at any time during the term of the Option by giving written notice of exercise to the Company on the form furnished by the Company for that purpose or, to the extent applicable, by written notice to a brokerage firm designated or approved by the Company, specifying the number of Shares subject to the Option to be purchased, and accompanied by payment of the exercise price and any withholding taxes, or suitable arrangements for such payment satisfactory to the Company. 
The exercise price for Shares to be purchased upon exercise of all or a portion of the Option shall be paid in any combination of the following: 
(a)in cash (by wire transfer or certified or bank check or such other instrument acceptable to the Company);
(b)if permitted by the Committee for Nonqualified Stock Options, having the Company withhold shares of Common Stock that would otherwise be issued on exercise of the Option that have a Fair Market Value on the date of exercise of the Option equal to the exercise price of the Option; 
(c)if permitted by the Committee, by using shares of Common Stock you already own; 

(d)to the extent permitted by applicable law, by instructing a broker to deliver to the Company the total payment required, all in accordance with the regulations of the Federal Reserve Board; or 
(e)by any other method permitted by the Committee. 
5.Treatment Upon Termination of Employment or Service Relationship. The unvested portion of the Option will terminate automatically and without further notice immediately upon your Termination of Service. You may exercise the vested portion of the Option as follows: 
(a)General Rule. You must exercise the vested portion of the Option on or before the earlier of (i) 30 days after your Termination of Service and (ii) the Option Expiration Date; 
(b)Retirement or Disability. In the event of your Termination of Service due to Retirement or Disability, you must exercise the vested portion of the Option on or before the earlier of (i) six months after your Termination of Service and (ii) the Option Expiration Date; and 
(c)Death. In the event of your Termination of Service due to your death, the vested portion of the Option must be exercised on or before the earlier of (i) six months after your Termination of Service and (ii) the Option Expiration Date. If you die after your Termination of Service but while the Option is still exercisable, the vested portion of the Option may be exercised until the earlier of (x) six months after the date of death and (y) the Option Expiration Date. 
It is your responsibility to be aware of the date the Option terminates. 
6.Limited Transferability. During your lifetime only you can exercise the Option. The Option is not transferable except by will or by the applicable laws of descent and distribution. The Plan provides for exercise of the Option by a beneficiary designated on a Company-approved form or the personal representative of your estate. Notwithstanding the foregoing and to the extent permitted by Section 422 of the Internal Revenue Code of 1986, the Committee, in its sole discretion, may permit you to assign or transfer the Option, subject to such terms and conditions as specified by the Committee. 
7.Withholding Taxes. As a condition to the exercise of any portion of an Option, you must make such arrangements as the Company may require for the satisfaction of any federal, state, local or foreign tax withholding obligations that may arise in connection with such exercise.
8.Option Not an Employment or Service Contract. Nothing in the Plan or this Agreement will be deemed to constitute an employment contract or confer or be deemed to confer any right for you to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate your employment or other relationship at any time, with or without Cause. 
9.No Right to Damages. You will have no right to bring a claim or to receive damages if you are required to exercise the vested portion of the Option within three months (one year in the case of death) of your Termination of Service or if any portion of the Option is cancelled or expires unexercised. The loss of existing or potential profit in the Option will not constitute an element of damages in the event of your Termination of Service for any reason even if the termination is in violation of an obligation of the Company or a Related Company to you. 
10.Binding Effect. This Agreement will inure to the benefit of the successors and assigns of the Company and be binding upon you and your heirs, executors, administrators, successors and assigns.

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