Exhibit 10.33

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

SETTLEMENT AND RELEASE AGREEMENT

 

This Settlement and Release Agreement (the “Agreement”) is made this 22nd day of
November, 2004, by and among the St. Paul Mercury Insurance Company (“St.
Paul”), Sheffield Insurance Company (“Sheffield”), Westchester Fire Insurance
Company (“Westchester”), and Greenwich Insurance Company (“Greenwich”) (St.
Paul, Sheffield, Westchester and Greenwich are collectively referred to as the
“D&O Carriers”)1, each of whom has issued an officers’ and directors’ policy of
liability or excess insurance to Microtune, Inc., and Microtune, Inc., on its
own behalf and on behalf of its past and/or present directors and/or officers
(except for the Individual Defendants and the Director Defendants as defined
herein) (“Microtune”), and Douglas J. Bartek, William Housley, Everett Rogers
and Nancy A. Richardson (the “Individual Defendants”), James A. Fontaine, James
H. Clardy, William P. Tai, Harvey B. Cash, Walter S. Ciciora, Steven Craddock
and Anthony J. LeVecchio (the “Director Defendants”). Microtune, the Individual
Defendants, and the Director Defendants are referred to collectively as the
“Microtune Parties.” The signatories to this Agreement hereinafter are referred
to singularly or collectively as, respectively, a “Party” or the “Parties.”

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1 Sheffield, Westchester and Greenwich have issued excess policies (the “Excess
Policies”) in favor of certain insureds relating to Microtune, Inc., and will be
referred to herein by their respective individual names, as well as by the
collective denomination of the “Excess Carriers.”

 

[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 2            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

PREAMBLE

 

WHEREAS, on February 24, 2003, Gianni Angeloni, individually and on behalf of
others similarly situated, filed an action against Microtune and the Individual
Defendants, alleging violations of federal securities laws and regulations in
the United States District Court for the Eastern District of Texas, Sherman
Division, titled Angeloni v. Microtune, Inc., et al., 4:03cv56;

 

WHEREAS, between March 3, 2003 and April 30, 2003 other actions were filed in
the United States District Court for the Eastern District of Texas, alleging
similar violations;

 

WHEREAS, on May 5, 2003, the Court consolidated all actions into the Angeloni
action (collectively, the “Securities Class Action”);

 

WHEREAS, on July 17, 2003, the Securities and Exchange Commission (“SEC)
commenced an investigation into alleged violations of the federal securities
laws and regulations styled In the Matter of Microtune, Inc. (FW-02594);

 

WHEREAS, [***]

 

WHEREAS, [***]

 

WHEREAS, on October 30, 2003, Michael Morris, derivatively on behalf of
Microtune, Inc., filed an action against the Microtune Parties in the United
States District Court for the Eastern District of Texas, Sherman Division,
titled Morris v. Fontaine, et al., 4:03cv409, alleging violations of the
Sarbanes-Oxley Act of 2002, breach of fiduciary duties of loyalty and care,
abuse of control, gross mismanagement, waste of corporate assets and unjust
enrichment;

 

WHEREAS, between October 30, 2003 and December 11, 2003, other derivative
actions were filed, alleging the same or similar claims. On December 29, 2003,
the Court consolidated all derivative actions into the Morris action
(collectively, the “Derivative Litigation”);

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 3            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

WHEREAS, on June 24, 2004, Microtune, on its own behalf and on behalf of the
other Microtune Parties, and representatives of the D&O Carriers participated in
a mediation of the Securities Class Action before mediator Gary McGowan in New
York City;

 

WHEREAS, the Parties reached an agreement in principle upon terms of settlement
of the Securities Class Action and later reached final agreement, subject to
court approval, to settle the Securities Class Action for $5,625,000;

 

WHEREAS, as part of the mediation, the Microtune Parties and the D&O Carriers
also reached an agreement in principle as to the extent of coverage afforded
under the D&O insurance for certain other claims made under the D&O insurance by
the Microtune Parties as more fully set forth herein;

 

WHEREAS, the Parties desire to compromise, settle and resolve all disputes,
claims, actions, suits, demands, causes of action, debts, liabilities,
agreements, contracts or promises, arising out of or related to the policies
issued by the D&O Carriers (the “Policies”)2 pursuant to which coverage is
sought in the Securities Class Action, the SEC Investigation, and the Derivative
Litigation, and the claims for the Securities Class Action, the SEC
Investigation, and the Derivative Litigation made under the Policies (“Claims”).

--------------------------------------------------------------------------------

2 The Policies include: (1) St. Paul Policy No. 512CM0827, for the Policy Period
of August 31, 2002 to August 31, 2003 (the “St. Paul Policy”); (2) Sheffield
Policy No. ECN99626, for the Policy Period of August 31, 2002 to August 31, 2003
(the “Sheffield Policy”); (3) Westchester Policy No. G21638122 001, for the
Policy Period of August 31, 2002 to August 31, 2003; and (4) Greenwich Policy
No. ELU819000-02, for the Policy Period of August 31, 2002 to August 31, 2003.

 

[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 4            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

NOW, THEREFORE, in consideration of the mutual promises and releases contained
herein, the receipt and sufficiency of which hereby are acknowledged, the
Parties agree as follows:

 

1. SETTLEMENT

 

1.1 The D&O Carriers agree to pay, subject to Microtune’s 15% co-pay
obligations, under the St. Paul Policy and the Sheffield Policy, $5,625,000 to
settle the Securities Class Action, which amount is to include any fee awarded
by the Court to plaintiffs’ counsel (such payments by the D&O Carriers and
Microtune hereafter referred to as the “Settlement Fund”).

 

1.2    The Settlement Fund shall be funded as follows:      Microtune   
                $ [***]      St. Paul                    $ [***]      Sheffield
                   $ [***]. 1.3    [***]      1.4    [***]      1.5    [***]   
 

 

1.6 Counsel to the Securities Class Action plaintiffs, the Microtune Parties and
the D&O Carriers agree that the funding of the Settlement Fund will occur no
later than 45 days after preliminary court approval of the Securities Class
Action settlement, and as set forth in the Stipulation and Agreement of
Settlement (the “Class Action Settlement Agreement”) to be executed by Microtune
and the Individual Defendants.

 

1.7 Funding of such settlement will be subject to the escrow arrangements
contained in Paragraphs 4 and 5 of the Class Action Settlement Agreement, which
Paragraphs are incorporated herein by reference.

 

1.8 In the event the opt-out threshold set forth in the Supplemental Agreement
to the Class Action Settlement Agreement (the “Supplemental Agreement”) is
exceeded, Microtune agrees that it will immediately advise the D&O Carriers of
such event and will not waive the opt-out limitations and proceed with
settlement of the Securities Class Action in contravention of the Supplemental
Agreement without all the D&O Carriers’ prior written consent.

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 5            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

1.9 If the opt-out threshold in the Supplemental Agreement is exceeded and
Microtune, after consultation with the Individual Defendants, makes a written
request for consent to go forward with the proposed settlement of the Securities
Class Action, the D&O Carriers will respond with a written statement of their
position within three (3) business days after receipt of the request.

 

1.10 In order to resolve all existing disputes concerning reimbursement of
Defense Costs (as defined in the St. Paul Policy) under the D&O insurance and to
avoid any further disagreements in the future, the Microtune Parties and the D&O
Carriers agree, between and among themselves, as follows:

 

  (a) Securities Class Action

 

Microtune reaffirms its obligation to indemnify the Individual Defendants for
reasonable Defense Costs incurred in connection with the Securities Class Action
in accordance with the indemnification agreements between Microtune and the
Individual Defendants through the effective date of final court approval of the
Securities Class Action settlement. Microtune further agrees that it will not
seek recoupment from any of the Individual Defendants for any Defense Costs paid
in connection with the Securities Class Action through the time of the
settlement. With respect to Defense Costs incurred in connection with the
settlement of the Securities Class Action after August 1, 2004, Microtune will
not pay for any unreasonable or unnecessary Defense Costs incurred by counsel
for the Individual Defendants, nor will the D&O Carriers be obligated to
reimburse for any such Defense Costs determined by Microtune to be unreasonable
or unnecessary. Microtune and the Individual Defendants agree the current hourly
billing rates for fees for which they seek reimbursement with respect to the
Securities Class Action will remain in effect through December 31, 2004;

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 6            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

  (b) SEC Investigation

 

Microtune reaffirms its obligation to indemnify the Individual Defendants for
reasonable Defense Costs incurred in connection with the SEC Investigation in
accordance with the indemnification agreements between Microtune and the
Individual Defendants. Microtune further agrees that it will not seek recoupment
from any of the Individual Defendants for any Defense Costs paid in connection
with the SEC Investigation through the time of any settlement of the SEC
Investigation. With respect to Defense Costs incurred in connection with the SEC
Investigation after August 1, 2004, Microtune will not pay for any unreasonable
or unnecessary Defense Costs incurred by counsel for the Individual Defendants,
nor will the D&O Carriers be obligated to reimburse for any such Defense Costs
determined by Microtune to be unreasonable or unnecessary. Microtune and the
Individual Defendants agree the current hourly billing rates for fees for which
they seek reimbursement with respect to the SEC Investigation will remain in
effect through December 31, 2004;

 

  (c) Except as otherwise set out in this Agreement, the Microtune Parties shall
not seek reimbursement, and there will be no reimbursement, from the D&O
Carriers for any Defense Costs incurred by the Microtune Parties in connection
with the SEC Investigation. It is understood, however, that those Defense Costs
incurred by the Microtune Parties in connection with reviewing and producing
certain documents to the SEC, which also assisted the defense of the Securities
Class

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 7            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

Action, will be entitled to a 50% reimbursement as previously agreed to between
St. Paul and Microtune and as approved by the other D&O Carriers and Microtune
Parties by their execution of this Agreement. It is further understood that the
D&O Carriers shall have no responsibility for any amounts paid in settlement in
connection with the SEC Investigation;

 

  (d) Derivative Litigation

 

Microtune reaffirms its obligation to indemnify the Individual Defendants and
Director Defendants for reasonable Defense Costs incurred in connection with the
Derivative Litigation in accordance with the indemnification agreements between
the Microtune Parties. If the Derivative Litigation is settled, Microtune
further agrees that it will not seek recoupment from any of the Individual
Defendants or Director Defendants for any Defense Costs paid in connection with
the Derivative Litigation through the time of the settlement. If the Derivative
Litigation does not settle, the Microtune Parties reserve all their rights, at
equity and law, under the indemnification agreements in connection with the
defense of the Derivative Litigation. Microtune will not pay for any
unreasonable or unnecessary Defense Costs incurred by counsel for the Individual
Defendants and Director Defendants in settling or defending the Derivative
Litigation, nor will the D&O Carriers be obligated to reimburse for any such
Defense Costs determined by Microtune to be unreasonable or unnecessary. The
Microtune Parties agree the current hourly billing rates for fees for which they
seek reimbursement with respect to the Derivative Litigation will remain in
effect through December 31, 2004; and

 

  (e) [***]

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 8            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

  (f) [***]

 

  (g) [***]

 

1.11 In order to expeditiously compromise all issues concerning the
reasonableness of outstanding fee bills, St. Paul agrees to reimburse Defense
Costs to Microtune on the following basis:

 

(a) Through June 22, 2004, Microtune submitted to St. Paul for reimbursement
under its Policy invoices reflecting Defense Costs in the Securities Class
Action of $2,419,091 (a portion of which included a fifty percent (50%) share of
Defense Costs relating to the SEC document production), and Defense Costs in the
Derivative Litigation of $125,310, for a total of $2,544,401;

 

(b) Subsequent to that date, additional Defense Cost invoices were forwarded by
Microtune but have not been reviewed or evaluated by St. Paul or other D&O
Carriers. Additionally, it was reported by Microtune at the mediation that an
additional $205,861 was incurred, but not billed, for Defense Costs in the
Securities Litigation through the date of the mediation; and $5,200 was
incurred, but not billed, in the Derivative Litigation;

 

(c) Thus, Microtune claims to have incurred, prior to the start of the
mediation, a total of $3,546,540 in Defense Costs for the Securities Litigation,
the Derivative Litigation and as a fifty percent (50%) share of Defense Costs
relating to SEC document production benefiting the Securities Litigation;

 

(d) To compromise and settle the disputes concerning reimbursement of Defense
Costs, the D&O Carriers and Microtune agree that [***] of the Defense Costs
comprising the $[***] total described above - or $[***] – shall be reimbursed
under the terms of the D&O Policies (“Reimbursed Fee Amount”); and

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 9            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

(e) St. Paul will reimburse to Microtune within 20 days of execution of this
Agreement, that portion of the Defense Costs previously submitted to it prior to
June 22, 2004 as follows:

 

$2,544,401

  Total Submitted to St. Paul per the attached schedule

        x[***]

  Reimbursed Fee Amount Adjustment

$ [***]

   

($1,000,000)

  Less Retention

$ [***]

  Subtotal

        x85%

  Coinsurance Adjustment

[***]

  Total Owed on Amounts Submitted to St. Paul

 ($414,634)

  Less Prior Payment by St. Paul

$ [***]

  Total Additional Defense Costs to be Paid by St. Paul.

 

1.12 Microtune and Sheffield agree that Sheffield will pay all additional
Defense Costs making up the difference between the amount paid by St. Paul
pursuant to Paragraph 1.11 (including its subsections) above and the total
amount owed under the Sheffield Policy towards the Reimbursed Fee Amount
($[***]) and will continue to reimburse Microtune for Defense Costs incurred in
connection with the Securities Class Action and the Derivative Litigation on the
same basis that St. Paul is reimbursing Microtune for the fee statements
submitted prior to the mediation, such that:

 

(a) All potential disputes concerning reasonableness of fees in the Securities
Class Action and the Derivative Litigation will be compromised and satisfied by
payment of [***]% of such fee statements; and

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 10            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

(b) Sheffield then will deduct the 15% co-insurance amount and pay the balance
of such fee statements within 30 days of the date of submission of such
statements to Sheffield’s counsel. The formula that will be applied to
reimbursement of Defense Costs pursuant to this Paragraph is as follows:

 

$3,546,540

  Total Fees Billed and Incurred per the Attached Schedule

$2,544,401

  Total Fees Submitted to St. Paul

$1,002,139

  Sub-total Submitted to Sheffield

        x[***]

  Reimbursed Fee Adjustment Amount

$ [***]

   

        x85%

  Coinsurance Adjustment

$ [***]

  Total Additional Defense Costs to Be Paid by Sheffield for those Fees Billed
and Incurred as Set Forth in Paragraph 1.12.

 

This amount will be paid by Sheffield within 20 days of execution of this
Agreement.

 

1.13 The D&O Carriers will have no responsibility for any Defense Costs in the
[***] except as provided pursuant to this Agreement.

 

1.14 The Baker Botts law firm will be principally responsible for the drafting
of all settlement documents and all other professional services needed to
consummate settlements of the Securities Class Action (and the Derivative
Litigation, if the Derivative Litigation is settled) subject to the ethical
responsibilities of counsel to the Individual Defendants and Director Defendants
in those actions to adequately represent their clients’ interest with respect to
finalization of the proposed settlements.

 

1.15 The D&O Carriers will not pay for any unreasonable or unnecessary Defense
Costs incurred by counsel for the Individual Defendants or Director Defendants
in finalizing such settlements. All settlement documents and terms are subject
to the prior written approval of all D&O Carriers and such approval will not be
unreasonably withheld.

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 11            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

2. COMPROMISE

 

2.1 The Parties agree and acknowledge that this Agreement reached between the
Microtune Parties and the D&O Carriers is the result of a compromise and shall
not be construed as an admission of liability under the D&O Policies.

 

2.2 In the event that the settlements of the Securities Class Action and the
Derivative Litigation contemplated by this Agreement are not consummated, or do
not receive judicial approval, or otherwise fail for any reason, neither this
Agreement nor any of the discussions leading to it, shall be admissible for any
purpose other than enforcement of its terms, nor shall it be deemed an
acknowledgment of coverage under the D&O Policies.

 

2.3 The D&O Carriers and the Microtune Parties acknowledge and agree that this
Agreement and the discussions leading to it do not constitute admissions by the
Microtune Parties or the D&O Carriers concerning coverage for, or the
reasonableness or necessity of, the fees and expenses submitted for
reimbursement as Defense Costs.

 

2.4 The Microtune Parties agree that nothing in this Agreement affects the
indemnification agreements between Microtune and each of the Individual
Defendants and Director Defendants, except as set forth herein.

 

2.5 This Agreement is conditioned upon the execution, final approval, and
validity of the Class Action Settlement Agreement, and upon the dismissal by
plaintiffs in the Securities Class Action, with prejudice, of all claims that
have been asserted, or could have been asserted, in that action against
Microtune and the Individual Defendants.

 

2.6 The settlement of the Derivative Litigation is conditioned upon the
dismissal by plaintiffs, with prejudice, of all claims that have been, or could
have been, asserted in that action against the Microtune Parties.

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 12            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

2.7 Sheffield and the other Excess Carriers acknowledge an ongoing obligation,
upon attachment of their respective policies, to reimburse Microtune for Defense
Costs incurred in connection with the Securities Class Action and the Derivative
Litigation on the same basis that St. Paul is reimbursing Microtune for the fee
statements submitted prior to the mediation, as set forth in Paragraph 1.12,
above.

 

2.8 In the event that any proceeding is filed in connection with Sheffield’s
obligation to reimburse Microtune for Defense Costs incurred in connection with
the Securities Class Action and the Derivative Litigation, as set forth in
Paragraph 1.12, the Microtune Parties and the Excess Carriers reserve their
rights with respect to same.

 

2.9 The Microtune Parties and the D&O Carriers further acknowledge that, except
as set forth in Paragraph 1.10(c), the D&O Carriers will have no further
obligation to fund any portion of the fees and expenses incurred by the
Microtune Parties with respect to the SEC Investigation.

 

2.10 The Microtune Parties and the D&O Carriers further acknowledge that the
obligation of each D&O Carrier to make its respective payment is several, not
joint. No D&O Carrier shall be liable for the failure of any other D&O Carrier
to make its own payment. Each D&O Carrier making its respective payment shall be
entitled to the full benefit of this Agreement, and the failure of any D&O
Carrier to make its respective payment shall not void the Agreement, or
constitute a breach of the Agreement as between the Mictrotune Parties and those
D&O Carriers making their respective payments.

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 13            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

3. RELEASES

 

3.1 The mutual releases annexed as Exhibits A and B hereto are incorporated into
this Agreement by reference and shall be executed between the Microtune Parties
and the D&O Carriers simultaneously with execution of this Agreement.

 

3.2 The Microtune Parties acknowledge that (1) they may have sustained damages,
expenses and losses in connection with the subject matter of the Claims released
hereunder (the “Released Claims”) which are presently unknown or not suspected
and that such damages, expenses, and losses, if any, may give rise to additional
damages, expenses and losses in the future which are not now anticipated by
them; and (2) that this Agreement and the foregoing release have been negotiated
and agreed upon despite this realization and, being fully advised, expressly
waive any and all rights they may have under the common law or any statute with
respect to the Released Claims.

 

3.3 [***]

 

3.4 [***]

 

4. CONFIDENTIALITY

 

4.1 The Parties understand and agree that the negotiations leading to, and the
terms of, this Agreement are confidential and further agree not to disclose to
any non-signatory the terms of this Agreement unless such disclosure is (i)
lawfully required by any governmental agency; (ii) otherwise required by law
(including legally required financial reporting); (iii) to a reinsurer; (iv) to
a Party’s auditor; (v) to a Party’s attorney, authority or securities or
commodities exchange or regulatory body or self-regulatory organization having
jurisdiction over any Party or any of its affiliates; or (vi) otherwise required
by law or applicable regulation, statute or governmental rule.

 

4.2 In the event that a Party (or its counsel) (the “Disclosing Party”) is

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 14            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

requested or required (by oral questions, interrogatories, requests for
information or documents, subpoena, civil investigative demand or other
process), by a non-signatory to disclose the terms of this Agreement, except for
a request from a Party’s auditor or attorneys, the Disclosing Party will provide
the other Parties with written notice of any such request or requirement as soon
as reasonably practicable, setting forth verbatim all information that it
proposes to disclose, the identity of each person or entity to whom the
information is to be disclosed, the confidentiality agreement governing such
disclosure, and the circumstances pursuant to which the disclosure is proposed
to be made, so that any other Parties may (i) seek an appropriate protective
order at its sole expense; (ii) seek the Disclosing Party’s cooperation to
narrow the request or demand, which cooperation shall not be unreasonably
withheld; and/or (iii) waive compliance with the provisions of this Agreement.

 

4.3 If, failing the entry of a protective order or the receipt of a waiver
hereunder, such Disclosing Party is, in the opinion of its counsel, compelled to
disclose the terms of this Agreement, the Disclosing Party may disclose only
that portion of the terms of this Agreement that the Disclosing Party is
compelled to disclose, and the Disclosing Party will exercise reasonable efforts
to obtain assurance that confidential treatment will be accorded any disclosed
terms of this Agreement. In any event, the Disclosing Party will not oppose
action by any other Party to obtain an appropriate protective order or other
reliable assurance that confidential treatment will be accorded to the terms of
this Agreement.

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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SETTLEMENT AND RELEASE AGREEMENT   Page 15            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

5. ADDITIONAL TERMS AND CONDITIONS:

 

Representations and Warranties:

 

5.1 The parties hereto represent that neither they nor any of their agents,
representatives, employees, or attorneys have heretofore assigned, transferred,
pledged or hypothecated, or purported to assign, transfer, pledge or
hypothecate, to any person, entity, principal or individual any of the claims,
demands, rights, actions, causes of action or liabilities that are the subject
of the releases contained in this Agreement.

 

5.2 Each of the Parties acknowledges and represents that it has carefully read
and fully understands all of the provisions of this Agreement. Each of the
Parties acknowledges that it is entering into this Agreement knowingly and
voluntarily and that this Agreement is a product of good faith negotiations
between the Parties.

 

5.3 Each of the Parties represents and warrants that the execution and delivery
of this Agreement and the consummation of this transaction will not conflict
with or result in any violation or defaults under any provision of its articles
of incorporation and/or charter or by-laws or partnership agreement or of any
decree, statute, law, ordinance, rule or regulation applicable to it, and no
further consent, approval, order or authorization or registrational filing with
any governmental authority is required in connection with the execution and
delivery of this Agreement or the consummation of the transactions described in
this Agreement.

 

5.4 The Parties agree that they will not bring or commence any action against
any of the other Parties for any claim, action, cause of action, right or
obligation released in this Agreement.

 

5.5 The Parties declare, warrant and represent that they have agreed to the
terms of this Agreement. Each signatory of this Agreement declares, warrants and
represents that he/she has the general and specific authority to enter into and
execute this Agreement on behalf of his/her respective principals/clients.

 

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SETTLEMENT AND RELEASE AGREEMENT   Page 16            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

Successors and Assigns:

 

5.6 This Agreement and the terms, conditions, obligations, undertakings, rights
and benefits hereof shall be binding upon, and shall inure to the benefit of,
each of the Parties hereto, and their respective heirs, executors,
administrators, successors, assigns, agents, attorneys or principals against
whom the claims herein released might be asserted. This Agreement shall not be
assignable by any Party without the prior written consent of all other Parties,
except for assignments by operation of law, merger or other change of control
transactions.

 

No Admissions:

 

5.7 The Parties understand and agree that this is a compromise and settlement of
disputed claims. Each of the parties specifically denies any liability or
wrongdoing whatsoever on its part. Neither this Agreement nor any of its
provisions, terms or conditions shall be construed to be an admission of
coverage or lack of coverage under the Policies, or an admission of the validity
or enforceability of any matters that are released pursuant to this Agreement,
or may be offered or received in evidence in any other actions, proceeding,
claim, or settlement negotiation as evidence of an admission of liability or
wrongdoing; provided, however, that this Agreement, proof of its execution, and
payment of the consideration under its terms shall be admissible, or may be
offered or received in evidence, to prove settlement and release of the claims
set forth herein.

 

Advice of Counsel:

 

5.8 By signing this Agreement and agreeing to the general releases contained
herein, the Parties acknowledge that they have been advised with respect thereto
by their respective attorneys, and that they have been afforded ample
opportunity to review this Agreement and the releases, and that they have read
and understand this Agreement and the releases.

 

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SETTLEMENT AND RELEASE AGREEMENT   Page 17            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

5.9 No provision of this Agreement shall be construed against any party or its
counsel because such party or its counsel drafted such provision.

 

Interpretation:

 

5.10 The language used in this Agreement is language chosen by the Parties to
express their mutual intent, and no rule of strict construction shall be applied
against any Party hereto. The Parties hereby acknowledge and agree that they
have been represented by counsel in the negotiation and drafting of this
Agreement.

 

Severability:

 

5.11 In the event any of the provisions of this Agreement are deemed to be
invalid and unenforceable, those provisions shall be severed from the remainder
of this Agreement only if and to the extent agreed upon by the Parties, and
shall not affect the validity or enforceability of the other provisions of this
Agreement.

 

Integration

 

5.12 This Agreement, together with the Exhibits hereto, constitute the entire
agreement between the Parties with respect to the matters addressed herein and
supersedes all prior or contemporaneous agreements, understandings,
representations, warranties, negotiations and discussions, whether oral or
written, of the Parties or their agents and representatives, except as
specifically set forth herein. Each Party acknowledges and agrees that it has
not relied on any representations made by any other Party (or its agents or
representatives) in deciding to enter into this Agreement, except as expressly
provided by this Agreement. No supplements or modifications or waiver or
terminations of this Agreement shall be binding unless executed in writing by
the Parties to be bound thereby.

 

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SETTLEMENT AND RELEASE AGREEMENT   Page 18            

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

Counterparts:

 

5.13 This Agreement may be executed in separate counterparts, at different
locations and on different dates. Each counterpart shall be deemed an original,
but all counterparts together shall constitute one and the same Agreement. This
Agreement shall be effective and finally executed when identical counterparts,
which when taken together bear the signature of all Parties, have been delivered
to counsel or representatives for all the Parties, either by facsimile,
overnight delivery service, or U.S. mail. Copies of all or part of this
Agreement, including signatures thereto, which are transmitted by facsimile
shall be presumed valid.

 

Governing Law:

 

5.14 This Agreement and any dispute, controversy, difference or claim arising
out of or relating to this Agreement, including but not limited to the express
or implied rights or obligations of one Party to the other, or the alleged
breached, termination, invalidity or formation thereof, shall be governed by and
interpreted according to the laws of the state of Texas, without regard to its
conflict of law rules.

 

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SETTLEMENT AND RELEASE AGREEMENT   Page 19             

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

Executed by:

 

MICROTUNE INC.   ST. PAUL MERCURY INSURANCE COMPANY By:  

/s/ James A. Fontaine

--------------------------------------------------------------------------------

  By:  

/s/ Kathryn Walker

--------------------------------------------------------------------------------

Its:   CEO & President   Its:   Director Public Company Claims Dated:   November
22, 2004   Date:   November 23, 2004 SHEFFIELD INSURANCE COMPANY   GREENWICH
INSURANCE COMPANY By:  

/s/ Tracy Forsyth

--------------------------------------------------------------------------------

  By:  

/s/ Steven J. Gladstone

--------------------------------------------------------------------------------

Its:   Vice President – Claims   Its:   Senior Vice President Dated:   November
22, 2004   Date:   November 22, 2004 WESTCHESTER FIRE INSURANCE COMPANY  
DOUGLAS J. BARTEK By:  

/s/ Kenneth D. Milbauer

--------------------------------------------------------------------------------

     

/s/ Douglas J. Bartek

--------------------------------------------------------------------------------

    ACE USA Claims       Dated November 22, 2004 Its:   Vice President of Claims
        Dated:   November 22, 2004         WILLIAM HOUSLEY   EVERETT ROGERS    

/s/ William Housely 11-22-04

--------------------------------------------------------------------------------

     

/s/ Everett Rogers

--------------------------------------------------------------------------------

Dated:   November 22, 2004   Date:   November 22, 2004 NANCY A. RICHARDSON  
JAMES A. FONTAINE    

/s/ Nancy A. Richardson

--------------------------------------------------------------------------------

     

/s/ James a Fontaine

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Dated:   November 22, 2004   Date:   November 22, 2004

 

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SETTLEMENT AND RELEASE AGREEMENT   Page 20             

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

JAMES H. CLARDY   WILLIAM P. TAI    

/s/ James H. Clardy

--------------------------------------------------------------------------------

     

/s/ William P. Tai

--------------------------------------------------------------------------------

Dated:   November 22, 2004   Date:   November 22, 2004 HARVEY B. CASH   WALTER
S. CICIORA    

/s/ Harvey B. Cash

--------------------------------------------------------------------------------

     

/s/ Walter S. Ciciora

--------------------------------------------------------------------------------

Dated:   November 22, 2004   Date:   November 22, 2004 STEVEN CRADDOCK   ANTHONY
J. LEVECCHIO    

/s/ Steven Craddock

--------------------------------------------------------------------------------

     

/s/ Anthony J. Levecchio

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Dated:   November 22, 2004   Date:   November 22, 2004

 

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CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

EXHIBIT A

 

MUTUAL RELEASE AND POLICY RELEASE

 

This Mutual Release and Policy Release (“Release”) is entered into by and
between the Microtune Parties (as defined in the Settlement and Release
Agreement to which this is attached) and St. Paul Mercury Insurance Company,
including its past, present and future parents, subsidiaries, divisions,
affiliates and their present or future officers, directors, agents, employees,
attorneys and re-insurers (“St. Paul”). This Release is incorporated by
reference into the Settlement and Release Agreement, and all capitalized terms
herein shall have the same meaning set forth in the Settlement and Release
Agreement.

 

1. RELEASE AND DISCHARGE OF ST. PAUL

 

Effective upon the Effective Date of Settlement (as defined in Paragraph 25 of
the Stipulation and Agreement of Settlement of the Securities Class Action) and
upon St. Paul’s timely payment of the amounts specified in Paragraphs 1.2 and
1.11(e) of the Settlement and Release Agreement to which this document is
attached, the sufficiency of which is hereby acknowledged, Microtune, on its
behalf and on behalf of all other insureds or persons, entities or organizations
who claim or who may claim any right under the St. Paul Policy,1 and Douglas J.
Bartek, William Housley, Everett Rogers, Nancy A. Richardson, James A. Fontaine,
James H. Clardy, William P. Tai, Harvey B. Cash, Walter S. Ciciora, Steven
Craddock and Anthony J. LeVecchio, collectively and individually, hereby
covenant not to sue St. Paul and release, acquit and forever discharge St. Paul,
and all other persons, natural and corporate, in privity with it, separately or
severally, from any and all past, present or future claims, demands, suits or
causes of action of any kind whatsoever, at common law, statutory, or otherwise,
which they have or might have against St.

 

--------------------------------------------------------------------------------

1 The term “St. Paul Policy” refers to Policy No. 512CM0827, for the Policy
Period of August 31, 2002 to August 31, 2003.

 

[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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EXHIBIT A TO SETTLEMENT AND RELEASE AGREEMENT

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

Paul, known or unknown, directly or indirectly arising out of or in any way
related to the Securities Class Action, the SEC Investigation, the Derivative
Litigation or the St. Paul Policy. This Release specifically includes, but is
not limited to, any claims or causes of action for compensatory, punitive or
statutory damages based upon any alleged breach of the duty of good faith and
fair dealing, unfair claims settlement practices, violation of any applicable
statute, including any applicable insurance code or deceptive trade practices
act, or any other acts, omissions, obligations, requirements and duties in any
way relating to the Securities Class Action, the SEC Investigation, the
Derivative Litigation or the St. Paul Policy.

 

2. ST. PAUL POLICY RELEASE

 

Microtune, on its behalf and on behalf of all other insureds or persons,
entities or organizations who claim or who may claim any right under the Policy,
and Douglas J. Bartek, William Housley, Everett Rogers, Nancy A. Richardson,
James A. Fontaine, James H. Clardy, William P. Tai, Harvey B. Cash, Walter S.
Ciciora, Steven Craddock and Anthony J. LeVecchio hereby acknowledge and affirm
that as of the effective date of the Release set forth in Paragraph 1, above,
St. Paul shall have no further liability or obligation whatsoever under the St.
Paul Policy, including without limitation, for any Claim(s), whether known,
unknown, past, present or future. In connection with this paragraph, it is
expressly stipulated and agreed that the Microtune Parties are hereby releasing
the St. Paul Policy and that such release extends to claims or matters for which
the Microtune Parties have sought, are seeking or may in the future seek
coverage for under the St. Paul Policy. It is the intent of the Microtune
Parties and St. Paul that the effect of this paragraph is to render the St. Paul
Policy without any further validity, force or effect, because all coverage
limits and obligations under the St. Paul Policy have been fully exhausted,
depleted and extinguished.

 

MUTUAL RELEASE   PAGE 2

 

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EXHIBIT A TO SETTLEMENT AND RELEASE AGREEMENT

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

3. RELEASE OF DEFENSE COST RECOUPMENT RIGHT

 

Conditioned upon the Microtune Parties’ compliance with their agreements and
obligations to St. Paul in the Settlement and Release Agreement and herein, the
sufficiency of which are hereby acknowledged, and effective upon the effective
date of the Release of St. Paul set forth in Paragraph 1, above, St. Paul
releases, acquits and forever discharges the Microtune Parties from its right
under the St. Paul Policy to seek or receive repayment, recoupment or
reimbursement of Defense Costs and Loss reimbursed under the St. Paul Policy.

 

4. FULL COMPLIANCE OF ALL OBLIGATIONS BY ST. PAUL

 

The Microtune Parties hereby confirm, stipulate and agree that upon execution
and performance of the obligations set forth in the Settlement and Release
Agreement and herein, St. Paul will have fully and completely satisfied all of
its obligations, requirements and duties owed to the Microtune Parties, under
common law or statute, relating to the St. Paul Policy. Microtune further
confirms, stipulates and agrees that execution of this Release is full and final
settlement of any claim(s) or cause(s) of action under the St. Paul Policy.

 

5. MULTIPLE COUNTERPARTS

 

This Release may be executed by the Parties in multiple counterparts, each of
which shall be deemed an original and all of which together shall constitute the
same agreement.

 

MUTUAL RELEASE   PAGE 3

 

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EXHIBIT A TO SETTLEMENT AND RELEASE AGREEMENT

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

Executed by:

 

MICROTUNE, INC.   ST. PAUL MERCURY INSURANCE COMPANY By:  

/s/ James A. Fontaine

--------------------------------------------------------------------------------

  By:  

/s/ Kathryn Walker

--------------------------------------------------------------------------------

Its:   CEO & President   Its:   Director Public Company Claims Dated:   November
22, 2004   Date:   November 23, 2004    

/s/ Douglas J. Bartek

--------------------------------------------------------------------------------

     

/s/ William Housely 11-22-04

--------------------------------------------------------------------------------

    Douglas J. Bartek       William Housley Dated:   November 22, 2004   Date:  
November 22, 2004    

/s/ Everett Rogers

--------------------------------------------------------------------------------

     

/s/ Nancy A. Richardson

--------------------------------------------------------------------------------

    Everett Rogers       Nancy A. Richardson Dated:   November 22, 2004   Date:
  November 22, 2004    

/s/ James A. Fontaine

--------------------------------------------------------------------------------

     

/s/ James H. Clardy

--------------------------------------------------------------------------------

    James A. Fontaine       James H. Clardy Dated:   November 22, 2004   Date:  
November 22, 2004    

/s/ William P. Tai

--------------------------------------------------------------------------------

     

/s/ Harvey B. Cash

--------------------------------------------------------------------------------

    William P. Tai       Harvey B. Cash Dated:   November 22, 2004   Date:  
November 22, 2004    

/s/ Watler S. Ciciora

--------------------------------------------------------------------------------

     

/s/ Steven Craddock

--------------------------------------------------------------------------------

    Walter S. Ciciora       Steven Craddock Dated:   November 22, 2004   Date:  
November 22, 2004    

/s/ Anthony J. Le Vecchio

--------------------------------------------------------------------------------

            Anthony J. LeVecchio         Dated:   November 22, 2004        

 

MUTUAL RELEASE   PAGE 4

 

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CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

EXHIBIT B

 

MUTUAL RELEASE

 

This Mutual Release (“Release”) is entered into by and between the Microtune
Parties (as defined in the Settlement and Release Agreement to which this is
attached) and the Excess Carriers (as defined in the Settlement and Release
Agreement to which this is attached). This Release is incorporated by reference
into the Settlement and Release Agreement, and all capitalized terms herein
shall have the same meaning set forth in the Settlement and Release Agreement.

 

1. THE MICROTUNE PARTIES’ RELEASE OF THE EXCESS CARRIERS:

 

Effective upon the Effective Date of Settlement (as defined in Paragraph 25 of
the Stipulation and Agreement of Settlement of the Securities Class Action),
conditioned upon payment in full of the Excess Carriers’ respective portions of
the Settlement Fund and Defense Costs as set forth in Paragraphs 1.2 and 1.12 of
the Settlement and Release Agreement, if applicable, and except for the promises
and obligations set forth in the Settlement and Release Agreement, the Microtune
Parties, on their own behalf and on behalf of each of their present, former or
future affiliates, parents, divisions, subsidiaries, heirs, predecessors,
successors, assigns, current or former directors and officers, attorneys, and
all persons acting by, through, under or in concert with them, and their agents
and all third persons claiming through them, hereby release acquit and fully
discharge Sheffield, Westchester and Greenwich and their present, former and
future affiliates, parents, divisions, subsidiaries, associates,
representatives, predecessors, successors, owners, assigns, and their present,
former and future directors, agents, partners, principals, officers, employees,
claim managers, trustees, insurers and reinsurers, representatives or any of
them, and their attorneys and all persons acting by, through, under or in
concert with them from any and all past, present or future claims, payments and
obligations and

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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EXHIBIT B TO SETTLEMENT AND RELEASE AGREEMENT

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

any claims for contract or tort damages, punitive damages, bad faith,
extracontractual liability, violation of statute, breach of duty of good faith,
debts, demands, payments, rights, obligations, judgments, awards, interest,
damages, losses, defense expenses, attorneys’ fees, liabilities, benefits, costs
and causes of action, of whatever kind or character, whether known or unknown,
direct or derivative, accrued or not, at law or in equity, fixed or contingent,
which they may have had, have now, or may have in the future for (1) the Claims
submitted by the Microtune Parties under the Excess Carrier’s Policies2 for the
Securities Class Action and the SEC Investigation, [***]; and (2) the manner in
which Sheffield, Westchester and Greenwich responded to, handled or resolved the
Claims for coverage for the Securities Class Action and the SEC Investigation.
This Release shall not include any claims asserted by members of the Settlement
Class (as defined in Class Action Settlement Agreement) in the Securities Class
Action who exclude themselves from the settlement of the Securities Class Action
and file or re-file claims against any of the Microtune Parties.

 

2. THE EXCESS CARRIERS’ RELEASE OF THE MICROTUNE PARTIES:

 

Effective upon the effective date of this Release as set forth in Paragraph 1,
above, Sheffield, Westchester and Greenwich, on their own behalf and on behalf
of each of their present, former or future affiliates, parents, divisions
subsidiaries, heirs, predecessors, successors, assigns, current or former
directors and officers, attorneys, and all persons acting by, through, under or
in concert with them, and their agents and all third persons claiming through
them, hereby release acquit and fully discharge the Microtune Parties and their
present, former

 

--------------------------------------------------------------------------------

2 The term “Excess Carriers’ Policies” refers to: (1) Sheffield Policy No.
ECN99626, for the Policy Period of August 31, 2002 to August 31, 2003; (2)
Westchester Policy No. G21638122 001, for the Policy Period of August 31, 2002
to August 31, 2003; and (3) Greenwich Policy No. ELU819000-02, for the Policy
Period of August 31, 2002 to August 31, 2003.

 

MUTUAL RELEASE   PAGE 2

 

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EXHIBIT B TO SETTLEMENT AND RELEASE AGREEMENT

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

and future affiliates, parents, divisions, subsidiaries, associates,
representatives, predecessors, successors, owners, assigns, and their present,
former and future directors, agents, partners, principals, officers, employees,
claim managers, trustees, insurers and reinsurers, representatives or any of
them, and their attorneys and all persons acting by, through, under or in
concert with them from any and all past, present or future claims, payments and
obligations and any claims for recoupment of Defense Costs or Loss paid by the
Excess Carriers, contract or tort damages, punitive damages, bad faith,
extracontractual liability, violation of statute, breach of duty of good faith,
debts, demands, payments, rights, obligations, judgments, awards, interest,
damages, losses, defense expenses, attorneys’ fees, liabilities, benefits, costs
and causes of action, of whatever kind or character, whether known or unknown,
direct or derivative, accrued or not, at law or in equity, fixed or contingent,
which they may have had, have now, or may have in the future for: (1) the Claims
submitted by the Microtune Parties under the Excess Carrier’s Policies for the
Securities Class Action and the SEC Investigation, [***]; and (2) the manner in
which the Microtune Parties responded to, handled or resolved any of their
Claims for coverage for the Securities Class Action and the SEC Investigation.
This Release shall not include any claims asserted by members of the Settlement
Class (as defined in Class Action Settlement Agreement) in the Securities Class
Action who exclude themselves from the settlement of the Securities Class Action
and file or re-file claims against any of the Microtune Parties.

 

3. MULTIPLE COUNTERPARTS

 

This Release may be executed by the Parties in multiple counterparts, each of
which shall be deemed an original and all of which together shall constitute the
same agreement.

 

MUTUAL RELEASE   PAGE 3

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.

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EXHIBIT B TO SETTLEMENT AND RELEASE AGREEMENT

 

CONFIDENTIAL MATERIALS HAVE BEEN OMITTED FROM THIS EXHIBIT PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

 

Executed by:

 

MICROTUNE, INC.   SHEFFIELD INSURANCE COMPANY By:  

/s/ James A. Fontaine

--------------------------------------------------------------------------------

  By:  

/s/ Tracy Forsyth

--------------------------------------------------------------------------------

Its:   President & CEO   Its:   Vice President – Claims Dated:   November 22,
2004   Dated:   November 22, 2004 GREENWICH INSURANCE COMPANY COMPANY  
WESTCHESTER FIRE INSURANCE COMPANY By:  

/s/ Steven J. Gladstone

--------------------------------------------------------------------------------

  By:  

/s/ Kenneth D. Milbauer

--------------------------------------------------------------------------------

Its:   Senior Vice President       ACE USA Claims Dated:   November 22, 2004  
Its:   Vice President – Claims         Date:   November 22, 2004

/s/ Douglas J. Bartek

--------------------------------------------------------------------------------

 

/s/ William Housely 11-22-04

--------------------------------------------------------------------------------

Douglas J. Bartek   William Housley Dated:   November 22, 2004   Date:  
November 22, 2004

/s/ Everett Rogers

--------------------------------------------------------------------------------

 

/s/ Nancy A. Richardson

--------------------------------------------------------------------------------

Everett Rogers   Nancy A. Richardson Dated:   November 22, 2004   Date:  
November 22, 2004

/s/ James A. Fontaine

--------------------------------------------------------------------------------

 

/s/ James H. Clardy

--------------------------------------------------------------------------------

James A. Fontaine   James H. Clardy Dated:   November 22, 2004   Date:  
November 22, 2004

/s/ William P. Tai

--------------------------------------------------------------------------------

 

/s/ Harvey B. Cash

--------------------------------------------------------------------------------

William P. Tai   Harvey B. Cash Dated:   November 22, 2004   Date:   November
22, 2004

/s/ Walter S. Ciciora

--------------------------------------------------------------------------------

 

/s/ Steven Craddock

--------------------------------------------------------------------------------

Walter S. Ciciora   Steven Craddock Dated:   November 22, 2004   Date:  
November 22, 2004

/s/ Anthony J. LeVecchio

--------------------------------------------------------------------------------

        Anthony J. LeVecchio         Dated: November 22, 2004        

 

MUTUAL RELEASE   PAGE 4

 

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[***] CONFIDENTIAL TREATMENT REQUESTED BY MICROTUNE, INC.