Document:

Settlement and Cross License Agreement

 EXHIBIT 10.12 
 NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the Registrant to the Securities and Exchange Commission (the “Commission”). Such portions have been
redacted and are marked with a “[***]” in the place of the redacted language. The redacted information has been filed separately with the Commission. 
 Settlement and Cross License 
 Agreement 
 This Settlement and Cross License Agreement (this “Agreement”), effective as of the 17th day of October, 2008
(the “Effective Date”), is made and entered into between Fairchild Semiconductor Corporation, a corporation incorporated under the laws of Delaware and having a principal place of business at 82 Running Hill Road, South Portland, ME
04106, Fairchild Semiconductor International, Inc., a corporation incorporated under the laws of Delaware, and their Subsidiaries (collectively “Fairchild”) on the one hand; and Alpha & Omega Semiconductor, Inc., a
corporation incorporated under the laws of California and having a principal place of business at 495 Mercury Drive, Sunnyvale, CA 94085, and Alpha & Omega Semiconductor, Ltd., a corporation incorporated under the laws of Bermuda, and their
Subsidiaries (collectively “AOS”) on the other hand (each a “party” and collectively the “parties”). 
 RECITALS 
 WHEREAS, Fairchild has filed a lawsuit against AOS in the United
States District Court for the Northern District of California, Case No. C 07-2664 JSW, and a request for a preliminary injunction order (PIO) against AOS in Taiwan Shihlin District Court, Case No.97 Tsai-Chuan-Zi1837, which request is on appeal with
the Taiwan Intellectual Property Court, Case No. 97 Zhuan-Kang-Zi 8; and AOS has filed a lawsuit against Fairchild in the United States District Court for the Northern District of California, Case No. C07-2638 JSW, and a request for a
preliminary injunction order (PIO) against Fairchild in the Taiwan Intellectual Property Court, Case No. 97 Ming-Chuan-Zi 26 (collectively, the “Complaints”); 
 WHEREAS, AOS has filed two requests for cancellation and invalidation against Fairchild in the Taiwan Intellectual Property Office, Case
No. 087118857N01 and 087118857N02 (collectively, the “Invalidation Actions”); 
 WHEREAS, Fairchild and
AOS desire to settle each of the claims asserted in the Complaints and the Invalidation Actions on the terms and conditions respectively set forth in this Agreement; and 
 WHEREAS, the parties desire to compromise, settle and discharge all of their claims, demands, liabilities and causes of action against each other and against their representatives, affiliates,
franchisees, successors, assigns, agents and attorneys arising from the subject matter of the Complaints and the Invalidation Actions. 
 NOW, THEREFORE, for and in consideration of the covenants, conditions and undertakings hereinafter set forth, it is hereby agreed by and between the parties as follows: 
 AGREEMENT 
  

	1.	Definitions. 

 “AOS Patents” means the patents listed in Exhibit B and any U.S. or foreign counterparts that issue from an application claiming priority to any of the applications that led to issuance of any of the patents listed
in Exhibit B, including all reissues, reexaminations, renewals, extensions, divisionals, continuations, and continuations-in-part of any of the patents listed in Exhibit B. 

 “Fairchild Patents” means the patents listed in Exhibit A and any
U.S. or foreign counterparts that issue from an application claiming priority to any of the applications that led to issuance of any of the patents listed in Exhibit A, including all reissues, reexaminations, renewals, extensions, divisionals,
continuations, and continuations-in-part of any of the patents listed in Exhibit A. 
 “Licensed Product” means
any product that, except for licenses granted herein, would be covered by one or more of the claims of the Fairchild or AOS Patents. 
 “Low Voltage Power MOSFET” means a discrete power MOSFET device (including for the avoidance of doubt devices having polysilicon gate) having a breakdown voltage with a magnitude (positive or negative) [***]. 
 “Subsidiary” means any corporation or other legal entity as to which a party owns, directly or indirectly, 70% or more of
the voting power or other similar interests. For purposes of this Agreement, any entity that owns, directly or indirectly, 70% or more of the voting power of the party as a result of a corporate restructuring not involving an investment in, or the
acquisition of, such party by any third party, including reincorporation, redomiciliation, amalgamation, short-form merger, or the like, will also be treated as a “Subsidiary.” 
  

	2.	License Grants. 

 2.1
Fairchild License Grant. Subject to the terms and conditions of this Agreement, Fairchild hereby grants to AOS a nonexclusive, worldwide, fully paid-up right and license (without the right to grant sublicenses) under the Fairchild Patents:

 (a) to make, use, lease, sell, offer to sell, import, export, and otherwise transfer Licensed Products, and to
practice any method or process and use any product involved in the manufacture or use thereof; and 
 (b) to
have made Licensed Products by another manufacturer for the sole use, lease, sale, offer for sale, import, export or other transfer by AOS provided that (i) the designs for such Licensed Products were either created or developed by or on behalf
of AOS, and (ii) such Licensed Products, as sold to a subsequent purchaser, are labeled solely as an AOS product. 
 2.2
AOS License Grant. Subject to the terms and conditions of this Agreement, AOS hereby grants to Fairchild a nonexclusive, worldwide, fully paid-up right and license (without the right to grant sublicenses) under the AOS Patents: 
 (a) to make, use, lease, sell, offer to sell, import, export, and otherwise transfer Licensed Products, and to practice any
method or process and use any product involved in the manufacture or use thereof; and 
 (b) to have made
Licensed Products by another manufacturer for the sole use, lease, sale, offer for sale, import, export or other transfer by Fairchild provided that (i) the designs for such Licensed Products were either created or developed by or on behalf of
Fairchild, and (ii) such Licensed Products, as sold to a subsequent purchaser, are labeled solely as a Fairchild product. 
 2.3 Covenants Not to Sue. 
 (a) Commencing on the Effective Date and ending on the third
anniversary of this Agreement, each party hereby covenants not to sue, agrees not to assert a claim, and agrees not to induce any third party to sue or assert a claim based on any United States or foreign patent, and/or any extensions or renewals
thereof, anywhere in the world, against the other party, or its Subsidiaries, suppliers, subcontractors, or foundries, related to making, having made, using, leasing, selling, offering to sell, importing, exporting or transferring a Low Voltage
Power MOSFET designed and labeled by, for or on behalf of the other party, or a claim against any subsequent purchaser acquiring such a product directly or indirectly from either party

  
 ***CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION*** 
  

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hereunder for any claim of patent infringement, provided that, except for the [***] of sales addressed in Section 2.3(c), such subsequent purchaser is an ordinary-course customer of the
selling party such as an original equipment manufacturer, original design manufacturer, electronic manufacturing services provider or distributor, or any of their customers. The parties further agree that, in any litigation following expiration of
this covenant, neither party will be entitled to damages for any activity that is covered by this covenant. 
 (b) Commencing on the Effective Date and ending on the sixth anniversary of this Agreement, AOS hereby covenants not to sue, agrees not to assert a claim, and agrees not to induce any third party to sue or assert a claim, anywhere in the
world, against Fairchild, or any Fairchild Subsidiary, supplier, subcontractor, or foundry, based on any claim of any of the patents listed in Exhibit C or any foreign counterparts that issue from an application claiming priority to any of the
applications that led to issuance of any of the patents listed in Exhibit C, including all reissues, reexaminations, renewals, extensions, divisionals, continuations, and continuations-in-part of any of the patents listed in Exhibit C, related to
making, having made, using, leasing, selling, offering to sell, importing, exporting or transferring a product by, for or on behalf of Fairchild, provided, however, that AOS shall have the right, subject to any defenses available to Fairchild, to
file such a lawsuit or assert such a claim in response to any lawsuit or claim filed by Fairchild, or any Fairchild Subsidiary, supplier, subcontractor, or foundry, against AOS or any AOS Subsidiary based on any U.S. or non-U.S. patent. 

(c) The covenants of Section 2.3(a) shall not extend to products sold, transferred, or otherwise disposed of by
either party in unpackaged wafer or die form, or otherwise in unpackaged form, in amounts exceeding [***] of such party’s total sales of Low Voltage MOSFETs in any calendar year. If the proportion exceeds [***], then the parties shall determine
reasonable and appropriate compensation for the overage. If the parties cannot agree to compensation, based on reasonable and good faith negotiation, within 60 days after the non-breaching party requests to negotiate under this paragraph, then the
non-breaching party may seek all legal or equitable remedies available under this Agreement without further notice to the other party. 
 (d) Each party shall maintain records relating to the proportion of its total sales of Low Voltage MOSFETs that is comprised of sales of products in unpackaged wafer or die form for at least three
(3) years. Each party (the “Audited Party”) will allow the other party (the “Auditing Party”) to audit such records of the Audited Party when requested by the Auditing Party upon 30-days’ notice, during business hours,
and solely for the purpose of determining the proportion of Low Voltage MOSFET products in unpackaged wafer and die form, through an independent certified-public-accountant auditor mutually agreeable to both parties. The independent auditor shall
execute a written confidentiality agreement with the Audited Party before gaining access to any confidential information of the Audited Party. The independent auditor shall have no right of access to any confidential information of the Audited Party
other than that necessary to conduct the audit, and shall report to the Auditing Party only the fact of compliance or the specific discrepancies of non-compliance with respect to the [***] limitation set forth in Sec. 2.3(c). Such audits with
respect to any half-yearly period may be conducted within three (3) years after the end of the half yearly period. There will be at most two audits per year. The Auditing Party will bear the cost of any audit, except that if the audit
establishes that the proportion of the Audited Party’s total sales of Low Voltage MOSFETs that are products in unpackaged wafer or die form exceeds the [***] limitation set forth in Sec. 2.3(c), the Audited Party will reimburse the Auditing
Party for the reasonable cost of the audit. 
 2.4 Limitations on Covenants Not to Sue and Licenses. 
 (a) General Limitations. Except for the covenants not to sue of Section 2.3, no license is granted by either
party either directly or by implication, estoppel, or otherwise other than under the Fairchild Patents or AOS Patents; or with respect to any item other than Licensed Products. 
 (b) No Sublicenses to Third Parties. Except for the “have made” rights of Sections 2.1(b) and 2.2(b),
nothing in this Agreement shall either expressly or impliedly give Fairchild or AOS the right to grant sublicenses under the Fairchild Patents or the AOS Patents to third parties, nor shall the sale of any Licensed

  
 ***CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION*** 
  

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Products provide or give rise to an implied license in favor of third parties, by implication, estoppel or otherwise, to any Fairchild or AOS patents other than those licensed herein. At all
times, except for the “have made” rights of Sections 2.1(b) and 2.2(b) and the covenants of Section 2.3, each of Fairchild and AOS retain the right to enforce its intellectual property rights against third parties for the infringement
of any Fairchild Patents or AOS Patents. 
 2.5 Press Release. The parties will agree on the form of a press release as
set forth in Exhibit D or other statement announcing the existence (but not the terms) of this Agreement. 
 2.6
Ownership Rights. All rights, title and interest in and to the Fairchild Patents are the sole and exclusive property of Fairchild and AOS’s rights under the Fairchild Patents arise only out of the license granted by this Agreement. All
rights, title and interest in and to the AOS Patents are the sole and exclusive property of AOS and Fairchild’s rights under the AOS Patents arise only out of the license granted by this Agreement. 
 2.7 Non-hire and Non-solicitation. For a period of three years after the Effective Date, neither party shall, without the prior
written consent of the other party, directly or indirectly hire or solicit for employment by such party or its Subsidiaries, any then-current employee of the other party or its Subsidiaries, provided, however, that the foregoing shall apply only to
the extent permitted by applicable law, and shall not apply to (i) generalized searches by use of advertisements that are not targeted at employees of the other party or its Subsidiaries or (ii) the employment of persons who approach the
hiring party without solicitation or encouragement by the hiring party, whether direct or indirect. For purposes of this section 2.7, “employment” includes providing services as a consultant, advisor, member of the board of directors or
similar body, partner, investor or other such role. 
  

	3.	Consideration. 

 3.1
Consideration. In consideration of, and as a condition precedent to, the licenses granted and covenants made herein, AOS shall pay to Fairchild a one-time fee of [***] within ten (10) days from the date of execution of this Agreement.

 3.2 Wire Transfer. Payment shall be made in United States Dollars and shall be made by electronic funds transfers.
Payment shall be deemed to be made on the date the consideration is received by Fairchild. The address, unless otherwise directed, for electronic funds transfer of payment is:
                        . 
 3.3 Taxes. AOS shall make all payments due hereunder in United States currency clear of and without deduction or deferment for any demand, set-off, counterclaim or other dispute. Without limiting
the generality of the aforesaid, all payments due by AOS shall be paid in full without deduction of taxes or other fees which may be imposed by any government, which taxes or other fees shall be paid by Fairchild. 
  

	4.	Settlement and Release. 

 4.1 Settlement. 
 (a) Within five (5) business days of the Effective Date, Fairchild shall
cause to be filed (i) in the United States District Court for the Northern District of California, Case No. C 07-2664 JSW a fully executed stipulated order of dismissal with prejudice; (ii) in Taiwan Shihlin District Court (Case
No. 97 Tsai-Chuan-Zi1837) and subsequent appellate proceedings at Taiwan Intellectual Property Court (Case No. 97 Zhuan-Kang-Zi 8), fully executed withdrawals or the equivalent under Taiwan laws, depending upon in which jurisdiction the
form is filed; and (iii) if an invalidation action was filed in Taiwan Intellectual Property Office against Taiwan Patent No. 117076, fully executed withdrawals of such action(s). 
 (b) Within five (5) business days of the Effective Date, AOS shall cause to be filed (i) in the United States
District Court for the Northern District of California, Case No. C 07-2638 JSW a fully executed stipulated order of dismissal with prejudice; (ii) in the Taiwan Intellectual Property Court, (Case No. 97

  
 ***CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION*** 
  

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Ming-Chuan-Zi 26), fully executed withdrawals in proper form or the equivalent under Taiwan laws; and (iii) in Taiwan Intellectual Property Office, fully executed withdrawals or the
equivalent of the Invalidation Actions (Case No. 087118857N01 and 087118857N02) in a proper format. 
 (c)
Furthermore, each party shall take all such additional steps and actions requested by the other party as may be necessary or desired to effect the dismissals of the cases and actions described in this Section 4.1. 
 4.2 Releases. Each party, for itself, its legal representatives, predecessors, successors, and assigns, and each of its past and
present officers, directors, shareholders, employees, Subsidiaries, divisions, partnerships, joint ventures, affiliated companies, attorneys, and agents, hereby unconditionally releases and forever discharges the other party and each of its legal
representatives, predecessors, successors, and assigns, and each of its past and present officers, directors, shareholders, employees, subsidiaries, divisions, partnerships, joint ventures, affiliated companies, foundries, subcontractors, attorneys,
agents, and users, from any and all claims, causes of action, demands, costs, obligations, damages, and liabilities of every kind, nature, and description whatsoever arising before the Effective Date arising from any infringement of the Fairchild or
AOS Patents, whether in law or in equity, individual or derivative, state or federal, U.S. or foreign, known or unknown, suspected or unsuspected, whether or not concealed or hidden, that arose under or relate to, or were asserted or could have been
asserted in connection with, the Complaints. 
 4.3 Waiver of Section 1542. The parties hereto expressly waive the
provisions of California Civil Code section 1542, which states: 
 A general release does not extend to claims which the creditor
does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 
  

	5.	Warranties; Disclaimer; Limitation of Liability. 

 5.1 Mutual Warranty. 
 (a) Each party hereby represents and
warrants that it has the full right and power to grant the license and immunities, respectively set forth in this Agreement, and that there are no outstanding agreements, assignments, or encumbrances inconsistent with the provisions of this
Agreement. Each party hereto warrants and represents to the other that its execution hereof has been duly authorized by all necessary corporate action of such party. 
 (b) Each party represents and warrants to the other that there are no other legal proceedings filed or pending by that party
against the other party other than the Complaints and the Invalidation Actions. 
 (c) Fairchild represents and
warrants that it has not filed a request for cancellation or invalidation of Taiwan Patent No. 117076. 
 5.2 Warranty
Disclaimer. The licenses granted to Fairchild and AOS are provided “AS IS.” WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EACH OF FAIRCHILD AND AOS DISCLAIMS ANY AND ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
BUT NOT LIMITED TO, ANY WARRANTY OF NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Nothing in this Agreement shall be construed as: 
 (a) an admission by either party as to the validity, enforceability or infringement of any of the Fairchild Patents or the AOS Patents; 
 (b) a warranty or representation by either party as to the validity, scope or enforceability of any of the Fairchild Patents
or the AOS Patents; 
  

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 (c) a warranty or representation by either party that anything made, used,
sold, leased or otherwise disposed of under this Agreement is or will be free from infringement of patents or other intellectual property rights of third parties; 
 (d) a requirement that either party shall file any patent application, secure any patent or maintain any patent in force;

 (e) an obligation of either party to bring or prosecute any actions or suits against third parties for
infringement of any Fairchild Patents or the AOS Patents or to defend any suit or action brought by a third party which challenges or concerns the Fairchild Patents or the AOS Patents or the use of any of the technology referred to or claimed by any
of the Fairchild Patents or the AOS Patents; 
 (f) an obligation of either party to furnish any manufacturing or
technical information, or any information concerning pending patent applications; 
 (g) granting by implication,
estoppel or otherwise, any licenses or rights under patents other than those expressly granted; 
 (h) a license
by either party to the other of any know how or trade secrets; or 
 (i) conferring any right to use in
advertising, publicity, or other promotional activities any name, trade name, trademark or other designation of either party. 
 5.3 Limitation of Liability. IN NO EVENT SHALL EITHER BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL LOSS OR DAMAGES OF ANY NATURE WHATSOEVER CONNECTED WITH OR RESULTING FROM THE
PERFORMANCE OR NON-PERFORMANCE OF THIS AGREEMENT, IRRESPECTIVE OF WHETHER SUCH DAMAGES ARE REASONABLY FORESEEABLE AND REGARDLESS OF WHETHER EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR NOT. 
  

	6.	Term and Termination. 

 6.1 Term. The term of this Agreement shall be from the Effective Date hereof until the expiration of the last to expire of the Fairchild Patents or the AOS Patents unless previously terminated as hereinafter provided. 
 6.2 Survival. Any provision of this Agreement that reasonably would be expected to survive termination or that states that it shall
survive termination, will survive termination of this Agreement. 
  

	7.	Confidentiality. Each party agrees that any information concerning either party’s technical information, existing or future products, and any other
confidential or business information disclosed in the furtherance of this Agreement including without limitation the financial and other terms (but not the existence) of this Agreement shall be held in strict confidence and shall not be disseminated
or disclosed without the express written consent of the other party, except as otherwise provided in this Agreement. If a party is directed to disclose any materials proprietary to the other party in conjunction with a judicial proceeding,
arbitration, or otherwise by law, then the party so directed may do so provided that it shall notify the other party in writing immediately and sufficiently in advance of any disclosure to allow the other party to seek a Protective Order or other
remedy to prevent the disclosure. This provision will survive the expiration or termination of this Agreement. 

  

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	8.	Notices. 

 8.1
Notices. All notices, including notices change of address, required or permitted to be given hereunder shall be in writing and shall be delivered by hand, or if dispatched by prepaid air courier or by registered or certified airmail, postage
prepaid, addressed as follows: 
  

			
	 If to Fairchild:
	  	If to AOS:
		
	 Fairchild Semiconductor Corp.
	  	Alpha & Omega Semiconductor, Inc.
	 82 Running Hill Road
	  	495 Mercury Drive
	 South Portland, ME 0410
	  	Sunnyvale, CA 94085
	 Attn: General Counsel
	  	Attn: Director of Intellectual Property

 8.2 Deemed Service. Such notices shall be deemed to have been served when received by addressee or, if delivery is not accomplished by reason of some fault of the addressee, when tendered for delivery. Either party may give written
notice of a change of address and, after notice of such change has been received, any notice or request shall thereafter be given to such party as above provided at such changed address. 
  

	9.	General Provisions. 

 9.1
Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties hereto with respect to its subject matter and terminates and supersedes any prior or contemporaneous agreements or understandings relating
to such subject matter. None of the provisions of this Agreement may be waived or modified except in a writing signed by both patties, and there are no representations, promises, agreements, warranties, covenants or undertakings other than those
contained herein. 
 9.2 Assignment. This Agreement and any licenses and rights herein granted are personal to the other
party and shall not be assigned, transferred (by merger, operation of law or in any other manner), sublicensed or encumbered without the other party’s prior written consent; except in connection with the sale, merger or acquisition of all or
substantially all of such party’s assets or business. In the event that either party is acquired by a third party (“Acquiring Party”) whether by a sale, merger, or acquisition, the licenses and covenants contained in this
Agreement will only apply to that portion of the Acquiring Party’s post-merger revenue that did not exceed the acquired party’s revenue in the last complete calendar year before the sale, merger, or acquisition. Any purported transfer,
assignment or delegation in violation of the foregoing will be null and void and of no force or effect. . The provisions of this paragraph do not apply to transactions between a party and any of its Subsidiaries. 
 9.3 Jurisdiction and Venue. With respect to any controversy, claim, or dispute arising out of or in connection with this Agreement,
the parties hereby consent to the jurisdiction, including personal and/or subject matter, and venue, in the United States District Court for the Northern District of California or an appropriate court of the State of California in Santa Clara
County, California. 
 9.4 No Waiver. No delay or omission on the part of either party to this Agreement in requiring
performance by the other party or in exercising any right hereunder shall operate as a waiver of any provision hereof or of any right or rights hereunder, and the waiver, omission or delay in requiring performance or exercising any right hereunder
on any one occasion shall not be construed as a bar to or waiver of such performance or right, or of any right or remedy under this Agreement on any future occasion. 
 9.5 Severability. Each Section or subsection of this Agreement shall be distinct and separate and, unless otherwise specified, the invalidity or illegality of any Section or subsection shall have
no effect on any other Section or subsection. If a tribunal declares a provision of this Agreement invalid, the Agreement will be deemed automatically adjusted to the minimum extent necessary to be valid. 
 9.6 Attorneys’ Fees. In the event of any action to enforce this Agreement or on account of any breach of or default under this
Agreement, the prevailing party in such action shall be entitled to recover, in addition to any

  

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other relief to which it may be entitled, all reasonable attorneys’ and experts’ fees incurred by the prevailing party in connection with such action (including, but not limited to, any
appeal thereof). 
 9.7 Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the
laws of the State of California without reference to its choice of law rules, except to the extent preempted by the laws of the United States of America. 
 9.8 Interpretation of Agreement. This Agreement is the product of an arms-length negotiation between the parties, with each of the parties being represented by legal counsel of their choice.
Accordingly, in any interpretation of this Agreement, it shall be deemed that this Agreement was prepared jointly by the parties, and no ambiguity shall be construed or resolved against either party on the premise or presumption that such party was
responsible for drafting this Agreement. Section and subsection headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect.

 9.9 Further Assurances. Each party shall do, or cause to be done, all such further acts, and shall execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered, any and all such further documentation as the other party reasonably requires to carry out the purposes of this Agreement. 
 9.10 Scope of Agreement. Each party by signing this Agreement acknowledges and agrees that no provision of this Agreement shall be
construed to apply to or grant any rights whatsoever with respect to any patents or rights to patents possessed by either party now or in the future, except for the Fairchild Patents or AOS Patents. 
 9.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same agreement. 
 [SIGNATURE PAGE TO FOLLOW] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Settlement and Cross License
Agreement effective as of the Effective Date. 
  

			
	Fairchild Semiconductor Corporation
		
	By:	 	/s/ Robert J. Conrad
	 Name:
	 	Robert J. Conrad
	 Title:
	 	EVP and General Manager, MCCC
	 Date:
	 	October 17, 2008

  

			
	 Fairchild Semiconductor International, Inc.

		
	By:	 	/s/ Robert J. Conrad
	 Name:
	 	Robert J. Conrad
	 Title:
	 	EVP and General Manager, MCCC
	 Date:
	 	October 17, 2008

  

			
	 Alpha & Omega Semiconductor, Inc.

		
	By:	 	/s/ Mike Chang
	 Name:
	 	Mike Chang
	 Title:
	 	CEO
	 Date:
	 	October 17, 2008

  

			
	 Alpha & Omega Semiconductor, Ltd.

		
	By:	 	/s/ Mike Chang
	 Name:
	 	Mike Chang
	 Title:
	 	CEO
	 Date:
	 	October 17, 2008

 [SIGNATURE PAGE TO SETTLEMENT 
 AND CROSSLICENSE AGREEMENT] 
  

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 Exhibit A 
 Fairchild Patents 
  

	1.	Taiwan Pat. No. 147027 

	2.	US Pat. No. 6,429,481 

	3.	US Pat. No. 6,521,497 

	4.	US Pat. No. 6,710,406 

	5.	US Pat. No. 6,828,195 

	6.	US Pat. No. 7,148,111 

	7.	US Pat. No. 6,818,947 

  

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 Exhibit B 
 AOS Patents 
  

	1.	US Pat. No. 5,767,567 

	2.	US Pat. No. 5,907,776 

	3.	US Pat. No. 5,930,630 

	4.	Taiwan Pat. No. 117076 

  

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 Exhibit C 
 Additional AOS Patents 
 [***] 
 ***CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION*** 
  

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 Exhibit D 
 Press Release 
 Fairchild Semiconductor and Alpha & Omega Semiconductor
Receive Patent Dispute 
 [            ], [State],
                    , 2008 — Fairchild Semiconductor (NYSE: FCS) and Alpha & Omega Semiconductor, Inc. announced today that they
have signed a settlement and cross license agreement, ending a patent dispute that began in 2007. The settlement encompasses actions that each party has filed in the U.S. as well as in Taiwan. The parties announced that AOS will make a one time
non-material payment to Fairchild, but otherwise the terms of the settlement and cross license agreement were not released. The parties will file requests for dismissal of all outstanding lawsuits in the appropriate courts. 
  

 13Form of Employment Agreement - Mike F. Chang

 Exhibit 10.13 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is made and entered into effective as of the              day of              2010 by
and between Alpha and Omega Semiconductor Limited, a company incorporated and existing under the laws of the Islands of Bermuda (the “Company”), and Mike F. Chang (the “Executive”). 
 WHEREAS, the Executive is currently serving as the Company’s Chief Executive Officer. 
 WHEREAS, the Company desires to continue to employ the Executive, and the Executive desires to continue employment with the Company,
upon the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the promises and mutual
covenants contained herein, the parties agree as follows: 
 ARTICLE 1. TERM OF EMPLOYMENT 
 1.1 Term of Employment. The Company hereby agrees to employ the Executive and the Executive hereby accepts such employment upon
the terms and conditions set forth in this Agreement. This Agreement shall have an initial term of one (1) year unless sooner terminated in accordance with Article 5. The term of this Agreement shall be automatically renewed for successive one
(1) year periods unless sooner terminated in accordance with Article 5 or unless either party delivers written notice of non-renewal to the other at least sixty (60) days prior to the next scheduled expiration date of this Agreement. The
period during which the Executive is in fact employed by the Company pursuant to this Agreement shall constitute the “Employment Period” hereunder. 
 ARTICLE 2. EMPLOYMENT DUTIES AND COMPENSATION 
 2.1
Title/Responsibilities. The Executive shall serve as the Chief Executive Officer of the Company. The Executive shall perform such duties as are usual and customary for such position and shall report directly to the Board. The Executive
shall devote his full business time and attention to the business and affairs of the Company during the Employment Period. The Executive shall not engage in any other business, job or consulting activity during the Employment Period without the
prior written permission of the Board. 
 2.2 Location. The Executive’s principal place of employment shall
be the Company’s principal offices in Sunnyvale, California, but the Executive may be required from time to time to travel to other geographic locations in connection with the performance of his duties hereunder. 
 ARTICLE 3. COMPENSATION AND BENEFITS. 
 3.1 Salary. The Executive shall be paid a base salary at the annualized rate of Three Hundred Twenty-Five Thousand Dollars ($325,000). Such rate shall be subject to annual review by the
Board and may be adjusted in the Board’s discretion. Base salary shall be paid at periodic intervals in accordance with the Company’s payroll practices for salaried employees. 
 3.2 Bonus. For each fiscal year of the Company during the Employment Period, the Executive shall be eligible to receive a cash
bonus in a dollar amount determined by the Board. The actual bonus payable for each fiscal year will depend upon the Executive’s performance and the extent to which the Executive has achieved the performance goals established for the Company
for that year. Any bonus awarded to the Executive shall be paid by the 15th day of the third calendar month following the close of the calendar year for which such bonus is earned. 
 3.3 Fringe Benefits. The Executive shall, throughout the Employment Period, be eligible to participate in all employee benefit
plans and programs, such as group term life insurance and group medical plans, which are

 
made available to the Company’s full-time employees and for which Executive qualifies. The Executive shall accrue paid vacation benefits during the Employment Period at the rate of three
weeks annually, in accordance with the vacation policies of the Company, and may take his accrued vacation at such time or times as are mutually convenient to the Company and the Executive. 
 3.4 Expense Reimbursement. The Executive shall be entitled, in accordance with the Company’s reimbursement policies in
effect from time to time, to receive reimbursement from the Company for all business expenses incurred by the Executive in the performance of his duties hereunder, provided the Executive furnishes the Company with vouchers, receipts and other
details of such expenses in the form required by the Company sufficient to substantiate a deduction for such business expenses under all applicable rules and regulations of federal and state taxing authorities (the “Supporting
Documentation”). The Executive must submit the Supporting Documentation for each such expense within sixty (60) days after the later of (i) the Executive’s incurrence of such expense or (ii) the Executive’s receipt of
the invoice for such expense. If such expense qualifies hereunder for reimbursement, then the Company will reimburse the Executive for that expense within thirty (30) days thereafter. 
 3.5 Conditions to Reimbursement. The following provisions shall be in effect for any reimbursements to which the Executive
otherwise becomes under this Agreement in order to assure that such reimbursements do not create a deferred compensation arrangement subject to Section 409A of the Code: 
 (i) The amount of reimbursements to which the Executive may become entitled in any one calendar year shall not affect the
amount of expenses eligible for reimbursement hereunder in any other calendar year. 
 (ii) Each reimbursement to
which the Executive becomes entitled shall be made no later than the close of business of the calendar year following the calendar year in which the reimbursable expense is incurred. 
 (iii) The Executive’s right to reimbursement cannot be liquidated or exchanged for any other benefit or payment.

 3.6 Withholding. The Company shall deduct and withhold from the compensation payable to the Executive hereunder
any and all applicable federal, state and local income and employment withholding taxes and any other amounts required to be deducted or withheld by the Company under applicable statutes, regulations, ordinances or orders governing or requiring the
withholding or deduction of amounts otherwise payable as compensation or wages to employees. 
 ARTICLE 4. CONFIDENTIALITY AND RESTRICTIVE
COVENANTS. 
 4.1 Proprietary Information and Inventions Agreement. The Executive shall continue to remain
subject to the terms and conditions of his Employee Confidential Information and Inventions Assignment Agreement (“CIIA”) with the Company dated as of December 22, 2006 throughout the Employment Period and thereafter, in accordance
with its terms. A copy of such agreement is attached hereto as Exhibit A. 
 4.2 Restrictive Covenants. During the
Employment Period and for the entire period during which the Executive is to receive salary continuation payments under Paragraph 5.3 or Paragraph 5.4 below, whether or not those salary continuation payments are delayed pursuant to Paragraph 6.1,
the Executive shall not: 
 (i) anywhere in the United States render any services or provide any advice,
assistance or support to any Competing Business, whether as an employee, agent, representative, consultant, partner, officer, director or stockholder or in any other capacity; provided, however, that the Company acknowledges and agrees that the
Executive may make a passive investment representing an interest of less than five percent (5%) of an outstanding class of publicly-traded securities of any corporation or other enterprise which may constitute a Competing Business hereunder;

  

 2 

 (ii) contact, solicit or call upon any customer of the Company on behalf of
any person or entity other than the Company for the purpose of selling any products or providing or performing any services of the type normally sold, provided or performed by the Company; 
 (iii) induce or attempt to induce any person or entity to curtail or cancel any business or contracts which such person or
entity has with the Company; 
 (iv) directly or indirectly encourage or solicit any employee, consultant or
independent contractor to leave the employment or service of the Company (or any affiliated company) for any reason or interfere in any other manner with any employment or service relationships at the time existing between the Company (or any
affiliated company) and its employees, consultants and independent contractors; or 
 (v) directly or indirectly
solicit any vendor, supplier, licensor, licensee or other business affiliate of the Company (or any affiliated company) or directly or indirectly induce any such person to terminate its existing business relationship with the Company (or affiliated
company) or interfere in any other manner with any existing business relationship between the Company (or any affiliated company) and any such vendor, supplier, licensor, licensee or other business affiliate. 
 ARTICLE 5. TERMINATION 
 5.1 Termination of Employment. The Executive’s employment pursuant to this Agreement may be terminated in accordance with the following provisions: 
 A. The Executive’s employment under this Agreement shall terminate immediately upon the Executive’s death or
Incapacity during the Employment Period. 
 B. The Company may terminate the Executive’s employment under
this Agreement (other than a Termination for Cause) at any time upon thirty (30) days prior written notice of such termination to him. If such termination notice is given to the Executive, the Company may, if it so desires, immediately relieve
Executive of some or all of his duties. 
 C. The Company may at any time, upon written notice, discharge the
Executive from employment with the Company hereunder pursuant to a Termination for Cause. Such termination shall be effective immediately upon such notice. 
 D. The Executive may terminate his employment under this Agreement for Good Reason in accordance with the requirements of such termination. 
 5.2 Payments Due Upon Any Termination. Upon any termination of the Executive’s employment during the Employment Period,
the Company shall provide to the Executive (or his estate): (i) any unpaid base salary earned under Paragraph 3 for services rendered through the date of termination and (ii) the dollar value of all accrued and unused vacation benefits
based upon the Executive’s most recent level of base salary. All vesting of the Executive’s outstanding options or other equity awards granted under the Plan shall cease at the time of his termination of employment, and the Executive (or
his estate) shall not have more than the limited period of time specified in the applicable stock option agreement in which to exercise any outstanding option following such termination of employment for any Common Shares for which those options are
vested and exercisable at the time of such termination. In addition, the Executive shall be eligible for the payments and other benefits provided under Paragraph 5.3 or Paragraph 5.4 below of this Agreement, to the extent he qualifies for
those payments and benefits in accordance with the applicable provisions of this Agreement. 
  

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 5.3 Severance Benefits Upon Involuntary Termination Without Change in
Control. Should the Executive’s employment pursuant to this Agreement terminate by reason of an Involuntary Termination at any time other than during the Change in Control Severance Period, then the Executive shall become eligible to
receive the severance payments and benefits described below provided that there is compliance with the following requirements (the “Severance Benefits Conditions”): 
 (i) The Executive shall, within twenty-one (21) days (or within forty-five (45) days if such longer period is
required under applicable law) following such Involuntary Termination, execute and deliver to the Company a general release in substantially the form attached hereto as Exhibit B which becomes effective in accordance with applicable law following
the expiration of any applicable revocation period. This requirement shall hereinafter be referred to as the “Release Condition.” 
 (ii) The Executive shall have complied with, and shall continue to comply with all of the Executive’s obligations under the CIIA. 
 (iii) The Executive shall have complied with, and shall continue to comply with the restrictive covenants set forth in
Paragraph 4.2. 
 In the event that the Executive violates his CIIA, or elects to engage or otherwise engages in any of the
activities precluded by the restrictive covenants set forth in Paragraph 4.2, the Executive shall not be entitled, after the date of such violation or activity (as the case may be), to receive any payments or benefits under Paragraph 5.3.

 The severance payments and benefits to which the Executive may become entitled under this Paragraph 5.3 shall consist of the
following: 
 (a) Salary Continuation Payments. The Executive shall be eligible to receive
his base salary for up to a total period of twelve (12) months at the annualized rate in effect for him under Paragraph 3 at the time of his Involuntary Termination. The first such payment shall be made on the sixtieth (60th) day following
the Executive’s Separation from Service due to such Involuntary Termination provided the requisite Release Condition is satisfied and subsequent salary continuation payments shall be made at periodic intervals in accordance with the
Company’s payroll practices for salaried employees. The salary continuation payments to which the Executive becomes entitled in accordance with this Paragraph 5.3 shall be treated as a right to a series of separate payments for purposes of
Section 409A of the Code. 
 (b) Health Care Coverage. Provided the Executive and his
spouse and eligible dependents elect to continue medical care coverage under the Company’s group health care plans pursuant to the applicable COBRA provisions, the Company shall provide continued medical care coverage for the Executive, his
spouse and his eligible dependents until the earliest to occur of (i) the expiration of the twelve (12)-month period measured from the first day of the calendar month following the calendar month in which his Involuntary Termination occurs,
(ii) the first date on which the Executive and his spouse and eligible dependents are covered under another employer’s health benefit program without exclusion for any pre-existing medical condition or (iii) the first date on which
the Executive elects to engage or otherwise engages in any of the activities precluded by the restrictive covenants of Paragraph 4.2. During the period such medical care coverage remains in effect hereunder, the following provisions shall govern the
arrangement: (a) the amount of such benefits in any one calendar year of such coverage shall not affect the amount of benefits in any other calendar year for which such benefits are to be provided hereunder and (b) the Executive’s
right to the benefits cannot be liquidated or exchanged for any other benefit. Any additional medical care coverage to which the Executive and his spouse and eligible dependents may be entitled under COBRA, following the period of such Company-paid
coverage, shall be at the Executive’s sole expense. 
 The foregoing benefits shall be in lieu of any other severance
benefits for which the Executive might otherwise be eligible by reason of his termination of employment under the circumstances specified in this Paragraph 5.3 
  

 4 

 5.4 Change in Control Severance Benefits. Should the Executive’s
employment pursuant to this Agreement terminate by reason of an Involuntary Termination within the Change in Control Severance Period, then the Executive shall become eligible to receive the following payments and benefits provided there is
compliance with the same Severance Benefit Conditions set forth in Paragraph 5.3: 
 (a) Salary
Continuation Payments. The Executive shall be eligible to receive his base salary for up to a total period of twenty-four (24) months at the annualized rate in effect for him under Paragraph 3 at the time of his Involuntary
Termination. The first such payment shall be made on the sixtieth (60th) day following the Executive’s Separation from Service due to such Involuntary Termination provided the requisite Release Condition is satisfied and subsequent salary
continuation payments shall be made at periodic intervals in accordance with the Company’s payroll practices for salaried employees. The salary continuation payments to which the Executive becomes entitled in accordance with this Paragraph 5.4
shall be treated as a right to a series of separate payments for purposes of Section 409A of the Code. 
 (b) Health Care Coverage. Provided the Executive and his spouse and eligible dependents elect to continue medical care coverage under the Company’s group health care plans pursuant to the applicable COBRA
provisions, the Company shall provide continued medical care coverage for the Executive, his spouse and his eligible dependents until the earliest to occur of (i) the expiration of the twenty-four (24)-month period measured from the first day
of the calendar month following the calendar month in which his Involuntary Termination occurs, (ii) the first date on which the Executive and his spouse and eligible dependents are covered under another employer’s health benefit program
without exclusion for any pre-existing medical condition or (iii) the first date on which the Executive elects to engage or otherwise engages in any of the activities precluded by the restrictive covenants of Paragraph 4.2. During the COBRA
continuation period, such coverage shall be provided under the Company’s group health care plans. Following the completion of the COBRA coverage period, such coverage shall continue under the Company’s group health plans or one or more
other plans providing equivalent coverage. During the period such medical care coverage remains in effect hereunder, the following provisions shall govern the arrangement: (a) the amount of such benefits in any one calendar year of such
coverage shall not affect the amount of benefits in any other calendar year for which such benefits are to be provided hereunder and (b) the Executive’s right to the benefits cannot be liquidated or exchanged for any other benefit.

 (c) Equity Award Acceleration. To the extent any option or other equity award granted
under the Plan is outstanding at the time of the Executive’s Involuntary Termination within the Change in Control Severance Period, but is not otherwise vested for all the shares, then the unvested portion of such option or other equity award
shall immediately vest in full. 
 Any options as so accelerated and all other vested options held by the Executive shall remain
outstanding until the earlier of (i) the expiration date of the maximum option term or (ii) the expiration of the limited period of time specified in the applicable stock option agreement for which the option is to remain exercisable
following the Executive’s termination of employment with the Company. 
 The severance payments and benefits provided under
this Paragraph 5.4 shall be in lieu of any other severance benefits for which the Executive might otherwise, by reason of the termination of his employment during the Change in Control Severance Period. 
 In the event that the Executive violates his CIIA, or elects to engage or otherwise engages in any of the activities precluded by the
restrictive covenants set forth in Paragraph 4.2, the Executive shall not be entitled, after the date of such violation or activity (as the case may be), to receive any payments or benefits under Paragraph 5.4. 
 In no event shall the Executive be entitled to benefits and payments under both Paragraphs 5.3 and 5.4 of this Agreement. 
  

 5 

 5.5 Benefit Limit. The benefit limitations of this Paragraph 5.5 shall be
applicable in the event the Executive receives any benefits under this Agreement that are deemed to constitute parachute payments under Code Section 280G. 
 In the event that any payments to which the Executive becomes entitled in accordance with the provisions of this Agreement would otherwise constitute a parachute payment under Code Section 280G, then
such payments will be subject to reduction to the extent necessary to assure that the Executive receives only the greater of (i) the amount of those payments which would not constitute such a parachute payment or (ii) the
amount which yields the Executive the greatest after-tax amount of benefits after taking into account any excise tax imposed on the payments provided to the Executive under this Agreement (or on any other benefits to which the Executive may become
entitled in connection with any change in control or ownership of the Company or the subsequent termination of his employment with the Company) under Code Section 4999. 
 Notwithstanding the foregoing, in determining whether the benefit limitation of this Paragraph 5.5 has been exceeded, a reasonable
determination shall be made as to the value of the restrictive covenants to which the Executive will be subject under Paragraph 4.2, and the amount of his potential parachute payment shall accordingly be reduced by the value of those restrictive
covenants to the extent consistent with Code Section 280G and the Treasury Regulations thereunder. 
 Should a reduction in
benefits be required to satisfy the benefit limit of this Paragraph 5.5, then the Executive’s salary continuation payments under Paragraph 5.3 or 5.4, as applicable, shall accordingly be reduced (with such reduction to be effected pro-rata to
each payment) to the extent necessary to comply with such benefit limit. Should such benefit limit still be exceeded following such reduction, then the number of shares as to which the option or other equity award would otherwise vest on an
accelerated basis in accordance with Paragraph 5.4 shall be reduced (based on the value of the parachute payment attributable to such option or equity award under Code Section 280G), to the extent necessary to eliminate such excess. 

ARTICLE 6. MISCELLANEOUS PROVISIONS 
 6.1 Section 409A.  
 A. It is the intention of
the parties that the provisions of this Agreement comply with the requirements of Section 409A of the Code and the Treasury Regulations thereunder. Accordingly, to the extent there is any ambiguity as to whether one or more provisions of this
Agreement would otherwise contravene the applicable requirements or limitations of Code Section 409A, then those provisions shall be interpreted and applied in a manner that does not result in a violation of the applicable requirements or
limitations of Code Section 409A and the Treasury Regulations thereunder. In no event may Executive, directly or indirectly, designate the calendar year of a payment. 
 B. Notwithstanding any provision to the contrary in this Agreement, no payments or benefits to which the Executive becomes
entitled under Paragraph 5.3 or 5.4 of this Agreement shall be made or paid to the Executive prior to the earlier of (i) the first business day of the seventh month following the date of the Executive’s Separation from
Service or (ii) the date of the Executive’s death, if (a) the Executive is deemed at the time of such Separation from Service a “specified employee” within the meaning of that term under Section 409A of the Code,
(b) the stock of the Company or any successor entity is publicly traded on an established market and (c) such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2). Upon
the expiration of the applicable deferral period, all payments deferred pursuant to this Paragraph 6.1 shall be paid in a lump sum to the Executive, and any remaining payments, benefits or reimbursements due under this Agreement shall be paid or
provided in accordance with the normal payment dates specified for them herein. 
 If the Executive is, at any time during the
twelve-month period ending on the last day of any calendar year, deemed to be a “key employee” within the meaning of that term under Code Section 416(i), then the Executive

  

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shall be deemed to be a specified employee subject to the delayed payment provisions of this Paragraph 6.1 for the period beginning on the April 1 of the following calendar year and ending
on the March 31 of the next year thereafter. 
 6.2 No Entitlement to Benefits. In no event shall the
Executive be entitled to any benefits under Paragraph 5.3 or 5.4 of this Agreement if his employment ceases by reason of a Termination for Cause, death or Incapacity or if he voluntarily resigns other than for a reason which qualifies as Good
Reason. 
 6.3 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and shall
be binding upon, (i) the Company and its successors and assigns, including any successor entity by merger, consolidation or transfer of all or substantially all of the Company’s assets (whether or not such transaction constitutes a Change
in Control), and (ii) the Executive, the personal representative of his estate and his heirs and legatees. 
 6.4
Notices. 
 A. Any and all notices, demands or other communications required or desired to be given
hereunder by any party shall be in writing and shall be validly given or made to another party if delivered either personally or if deposited in the United States mail, certified or registered, postage prepaid, return receipt requested. If such
notice, demand or other communication shall be delivered personally, then such notice shall be conclusively deemed given at the time of such personal delivery. 
 B. If such notice, demand or other communication is given by mail, such notice shall be conclusively deemed given forty-eight
(48) hours after deposit in the United States mail addressed to the party to whom such notice, demand or other communication is to be given as hereinafter set forth: 
 To the Company: 
 Alpha and Omega Semiconductor Limited 
 c/o Alpha and Omega
Semiconductor Incorporated 
 495 Mercury Drive, Sunnyvale 
 California, USA 94085 
 To the Executive: 
 Mike F. Chang 
 13095 Montebello Road, Cupertino 
 California, USA 95014 
 C. Any party hereto may change its address for the purpose of receiving notices, demands and other communications as herein provided by a written notice given in the manner aforesaid to the other party
hereto. 
 6.5 General Creditor Status. The benefits to which the Executive may become entitled under Article 5 of
this Agreement shall be paid, when due, from the Company’s general assets, and no trust fund, escrow arrangement or other segregated account shall be established as a funding vehicle for such payments. Accordingly, the Executive’s right
(or the right of the executors or administrators of the Executive’s estate) to receive such benefits shall at all times be that of a general creditor of the Company and shall have no priority over the claims of other general creditors.

 6.6 Governing Documents. This Agreement, together with (i) the agreements evidencing the Executive’s
currently outstanding options and any future option grants or other equity awards and (ii) his CIIA, shall constitute the entire agreement and understanding of the Company and the Executive with respect to the terms and conditions of the
Executive’s employment with the Company and the payment of severance benefits and

  

 7 

 
shall supersede all prior and contemporaneous written or verbal agreements and understandings between the Executive and the Company relating to such subject matter. Any and all prior agreements,
understandings or representations relating to the Executive’s employment with the Company, other than (i) the agreements evidencing the Executive’s currently outstanding options and (ii) his CIIA, are hereby terminated and
cancelled in their entirety and are of no further force or effect. 
 6.7 Governing Law. The provisions of this
Agreement shall be construed and interpreted under the laws of the State of California applicable to agreements executed and wholly performed within the State of California. If any provision of this Agreement as applied to any party or to any
circumstance should be adjudged by a court of competent jurisdiction or determined by an arbitrator to be void or unenforceable for any reason, the invalidity of that provision shall in no way affect (to the maximum extent permissible by law) the
application of such provision under circumstances different from those adjudicated by the court or determined by the arbitrator, the application of any other provision of this Agreement, or the enforceability or invalidity of this Agreement as a
whole. Should any provision of this Agreement become or be deemed invalid, illegal or unenforceable by reason of the scope, extent or duration of its coverage, then such provision shall be deemed amended to the extent necessary to conform to
applicable law so as to be valid and enforceable and consistent with the intent of the Parties hereto. If such provision cannot be so amended without altering the intention of the parties, then such provision, including any consideration
specifically tied to such provision, will be stricken and the remainder of this Agreement shall continue in full force and effect. It is the express intent of the Parties that should any of the Severance Benefit Conditions of Paragraph 5.3 or 5.4 be
void or unenforceable as written herein then Executive shall not be entitled to any additional severance payments or benefits under Paragraph 5.3 or under Paragraph 5.4 (as the case may be). 
 6.8 Arbitration. 
 A. Each party agrees that any and all disputes which arise out of or relate to the Executive’s employment, the termination of the Executive’s employment or the terms of this Agreement shall be
resolved through final and binding arbitration. Such arbitration shall be in lieu of any trial before a judge and/or jury, and the Executive and Company expressly waive all rights to have such disputes resolved through trial before a judge and/or
jury. Such disputes shall include, without limitation, claims for breach of contract or of the covenant of good faith and fair dealing, claims of discrimination, claims under any federal, state or local law or regulation now in existence or
hereinafter enacted and as amended from time to time concerning in any way the subject of the Executive’s employment with the Company or its termination. 
 B. Arbitration shall be held in Santa Clara County, California and conducted in accordance with the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association (“AAA Rules”), provided, however, that the arbitrator shall allow the discovery authorized by California Code of Civil Procedure section 1282, et seq., or any other
discovery required by applicable law in arbitration proceedings. To the extent that any of the AAA Rules conflict with applicable law, the arbitration procedures required by applicable law shall govern. 
 C. During the course of the arbitration, the Company will pay the arbitrator’s fee and any other type of expense or cost
that the Executive would not otherwise be required to bear if he were free to bring the dispute or claim in court and any other expense or cost that is unique to arbitration. The Company and the Executive shall each bear its or his own respective
attorneys’ fees incurred in connection with the arbitration. 
 D. The arbitrator shall issue a written
award that sets forth the essential findings of fact and conclusions of law on which the award is based. The arbitrator shall have the authority to award any relief authorized by law in connection with the asserted claims or disputes. The
arbitrator’s award shall be subject to correction, confirmation, or vacation, as provided by applicable law setting forth the standard of judicial review of arbitration awards. Judgment upon the arbitrator’s award may be entered in any
court having jurisdiction thereof. 
 6.9 Legal Representation. The Executive acknowledges that he has had the
right to consult with counsel and is fully aware of his rights and obligations under this Agreement. 
  

 8 

 6.10 Counterparts. This Agreement may be executed in more than one
counterpart, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. 
 ARTICLE 7. – DEFINITIONS 
 For purposes of this Agreement, the following definitions shall be in effect:

 Board means the Company’s Board of Directors. 
 Change in Control means a change in control of the Company effected through any of the following transactions: 
 (i) a merger, consolidation or other reorganization approved by the Company’s shareholders, unless securities
representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor Company are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by
the persons who beneficially owned the Company’s outstanding voting securities immediately prior to such transaction, or 
 (ii) a shareholder-approved sale, transfer or other disposition of all or substantially all of the Company’s assets in liquidation or dissolution of the Company, or 
 (iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Company or a person
that directly or indirectly controls, is controlled by, or is under common control with, the Company), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s shareholders. 
 Change in Control Severance Period means the period commencing with the Company’s execution of the definitive agreement for a Change in Control transaction and continuing until the end of the
twelve (12)-month period measured from the closing date of that Change in Control. 
 Code means the Internal Revenue
Code of 1986, as amended. 
 Common Share means the Company’s common share. 
 Competing Business means any business which is or, to the best of the Executive’s knowledge, is expected to become, competitive
with the business or any contemplated business of the Company, or any direct or indirect subsidiaries of the Company or any of their affiliates. 
 Employment Period means the Employment Period as defined in Paragraph 1 of this Agreement. 
 Good Reason means the Executive’s voluntary resignation within ninety (90) days following one or more of the following events that occur without the Executive’s written consent:
(A) a material diminution in the Executive’s authority, duties or responsibilities under Paragraph 2.1, (B) a material reduction in his base compensation, with a reduction of fifteen percent (15%) or more to be deemed material
for such purpose, (C) a material relocation of his principal place of employment, with a relocation that is more than fifty (50) miles from the location of his principal office in Sunnyvale, California to be deemed material for such
purpose, or (D) a material breach by the Company of any of its obligations under this Agreement; provided, however, that none of the events specified above shall constitute Good Reason unless the Executive first provides written notice to the
Company describing the applicable event within thirty (30) days following the occurrence of that event and the Company fails to cure such event within thirty (30) days after receipt of such written notice. 
 Incapacity means the inability of the Executive, by reason of any injury or illness, to properly perform his normal duties and
responsibilities under this Agreement. 
  

 9 

 Involuntary Termination means (i) the Company’s termination of the
Executive’s employment for any reason other than a Termination for Cause or (ii) the Executive’s voluntary resignation for Good Reason. 
 An Involuntary Termination shall not include the termination of the Executive’s employment by reason of death or Incapacity or non-renewal of this Agreement by the Executive. 
 1934 Act means the U.S. Securities Exchange Act of 1934, as amended. 
 Plan means (i) the Company’s 2000 Share Plan, (ii) the Company’s 2009 Share Option/Share Issuance Plan, as
amended or restated from time to time, and (iii) any successor stock incentive plan subsequently implemented by the Company. 
 Separation from Service means the Executive’s cessation of Employee status and shall be deemed to occur at such time as the level of the bona fide services the Executive is to perform in Employee status (or as a consultant or
other independent contractor) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services the Executive rendered in Employee status during the immediately preceding thirty-six (36) months
(or such shorter period for which the Executive may have rendered such service). Any such determination as to Separation from Service, however, shall be made in accordance with the applicable standards of the Treasury Regulations issued under Code
Section 409A. For purposes of determining whether the Executive has incurred a Separation from Service, the Executive will be deemed to continue in “Employee” status for so long as he remains in the employ of one or more
members of the Employer Group, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. “Employer Group” means the Company and any other corporation or
business controlled by, controlling or under common control with, the Company as determined in accordance with Sections 414(b) and (c) of the Code and the Treasury Regulations thereunder, except that in applying Sections 1563(a)(1),
(2) and (3) for purposes of determining the controlled group of corporations under Section 414(b), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place the latter phrase
appears in such sections and in applying Section 1.414(c)-2 of the Treasury Regulations for purposes of determining trades or businesses that are under common control for purposes of Section 414(c), the phrase “at least 50
percent” shall be used instead of “at least 80 percent” each place the latter phrase appears in Section 1.414(c)-2 of the Treasury Regulations. In addition to the foregoing, a Separation from Service will not be deemed to have
occurred while the Executive is on a sick leave or other bona fide leave of absence if the period of such leave does not exceed six (6) months or any longer period for which the Executive is provided with a right to reemployment with the
Company by either statute or contract; provided, however, that in the event of a leave of absence due to any medically determinable physical or mental impairment that can be expected to result in death or to last for a continuous
period of not less than six (6) months and that causes the Executive to be unable to perform his duties as an Employee, no Separation from Service shall be deemed to occur during the first twenty-nine (29) months of such leave. If the
period of leave exceeds six (6) months (or twenty-nine (29) months in the event of disability as indicated above) and the Executive is not provided with a right to reemployment by either statute or contract, then the Executive will be
deemed to have Separated from Service on the first day immediately following the expiration of the applicable six (6)-month or twenty-nine (29)-month period. 
 Termination for Cause means the termination of the Executive’s employment due to (i) the commission of any act of fraud, embezzlement or dishonesty by the Executive or his conviction of a
felony, (ii) any unauthorized use or disclosure by the Executive of confidential information or trade secrets of the Company (or any parent or subsidiary), (iii) any other misconduct by the Executive adversely affecting the business or
affairs of the Company in a material manner, (iv) the Executive’s failure to cure any breach of his obligations under this Agreement or his Proprietary Information and Inventions Agreement with the Company after written notice of such
breach from the Company and a reasonable cure period of at least thirty (30) days or (v) the Executive’s breach of any of his fiduciary duties as an officer or director of the Company. The foregoing definition shall not be deemed to
be inclusive of all the acts or omissions which the Company (or any parent or subsidiary) may consider as grounds for the dismissal or discharge of the Executive or any other individual in the service of the Company (or any parent or subsidiary),
but a dismissal for such other acts or omissions shall not constitute a Termination for Cause for purposes of this Agreement unless otherwise described above. 
  

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 IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the
dates indicated below. 
  

			
	ALPHA AND OMEGA SEMICONDUCTOR LIMITED
		
	By:	 	 
		
	Title:	 	 
		
	Dated:	 	                                       
                                      , 2010
	
	THE EXECUTIVE
		
		 	 
		
	Dated:	 	                                       
                                      ,
2010

 [Signature Page to the Employment Agreement] 

 EXHIBIT A 
 EMPLOYEE CONFIDENTIAL INFORMATION 
 AND
INVENTIONS ASSIGNMENT AGREEMENT 

 EXHIBIT B 
 GENERAL RELEASE 
 THIS DOCUMENT IS INTENDED AS
A FORM OF THE GENERAL SETTLEMENT AND RELEASE. PURSUANT TO SECTION 5.3 AND SECTION 5.4 OF THE EMPLOYMENT AGREEMENT, EXECUTION OF A RELEASE, IN SUBSTANTIALLY THE SAME FORM AS THIS EXHIBIT B IS A CONDITION FOR EXECUTIVE’S RECEIPT OF CERTAIN
BENEFITS PURSUANT TO SECTION 5.3 AND SECTION 5.4 OF THE EMPLOYMENT AGREEMENT. THE FORM MUST BE FINALIZED BY ALPHA AND OMEGA SEMICONDUCTOR LIMITED PRIOR TO EXECUTION. 

 GENERAL SETTLEMENT AND RELEASE AGREEMENT 
 This General Settlement and Release Agreement (the “Agreement”) is by and between Alpha and Omega Semiconductor Limited, for
itself and for all of its affiliated, related, parent and direct and indirect subsidiary companies, joint venturers and partnerships, successors and permitted assigns and each of them (collectively, “AOS”), on the one hand, and Mike F.
Chang, for himself, and his agents, representatives, heirs and assigns (“Executive”), on the other hand. 
 1. Payments. In full and complete consideration for Executive’s promises and undertaking set forth in this Agreement, following the eighth (8th) day following receipt by AOS of a fully executed Settlement and Release Agreement from Executive, AOS will
provide Executive the consideration, if any, to which Executive is entitled pursuant to the Employment Agreement between the parties, dated
                    , 2010, at the times specified in Section 5.3 or Section 5.4 (as applicable) of that Agreement unless the
signature on this Agreement is revoked pursuant to Paragraph 7 below. 
 2. Release of Known and Unknown
Claims. 
 (a) It is understood and agreed by the parties to this Agreement that in consideration
of the mutual promises and covenants contained in this Agreement, and after consultation with counsel, Executive irrevocably and unconditionally releases and forever discharges AOS and each of the other Released Parties from any and all causes of
action, claims, actions, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character, which Executive may have against AOS or any of the Released Parties, or any of them, by reason of or arising out of,
touching upon or concerning Executive’s employment, separation of his employment and reapplication for employment with AOS, or any statutory claims, or any and all other matters of whatever kind, nature or description, whether known or unknown,
occurring prior to the date of the execution of this Agreement. Executive acknowledges that this release of claims specifically includes, but is not limited to, any and all claims for fraud; breach of contract; breach of the implied covenant of good
faith and fair dealing; inducement of breach; interference with contractual rights; wrongful or unlawful discharge or demotion; violation of public policy; sexual assault and battery; invasion of privacy; intentional or negligent infliction of
emotional distress; intentional or negligent misrepresentation; conspiracy; defamation; unlawful effort to prevent employment; discrimination or harassment on the basis of age, race, color, sex, national origin, ancestry, religion, disability,
handicap, medical condition or marital status; any claim under: Title VII, ADA, ADEA OWBPA, FMLA, COBRA, OSHA, ERISA, IRC, FEHA, CalOsha, or any other wrongful conduct, based upon events occurring prior to the date that this Agreement is executed by
Executive. Notwithstanding anything to the contrary herein, this Agreement shall not release Executive’s right, if any, to indemnification pursuant to the Company’s Bylaws or insurance policies, for any claims arising out of
Executive’s conduct as an employee or officer of the Company during his employment. 
 (b) Executive
represents and warrants that he has not assigned or subrogated any of his rights, claims or causes of action, including any claims referenced in this Agreement, or authorized any other person or entity to assert such claims on his behalf, and he
agrees to indemnify and hold harmless AOS and each of the Released Parties against any assignment of said rights, claims and/or causes of action. 
 3. Waiver of Unknown Claims. 
 (a) Executive
does hereby expressly waive and relinquish all rights and benefits afforded to him under law, and does so understanding and acknowledging the significance and consequences of such a waiver. 
 (b) Releases of Unknown Claims/Waiver of Civil Code Section 1542. The parties agree that this Agreement is
a full and final release of any and all claims and Executive expressly waives the benefit of Section 1542 of the California Civil Code, which provides: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR 
  

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 (c) Executive acknowledges and understands that he is being
represented in this matter by counsel, and acknowledges that he is not required to release unknown claims but that he expressly acknowledges and agrees that this Agreement is also intended to include in its effect, without limitation, all such
claims which he does not know or suspect to exist at the time of the execution of this Agreement, and that this Agreement contemplates the extinguishment of those claims. 
 (d) Executive acknowledges and agrees that he may later discover facts different from or in addition to those he now
knows or believes to be true in entering into this Agreement. Executive agrees to assume the risk of the possible discovery of additional or different facts, including facts which may have been concealed or hidden, and agrees that this Agreement
shall remain effective regardless of such additional or different facts. Executive further acknowledges and agrees that neither AOS nor any of the other Released Parties had any duty to disclose any fact to him prior to the execution of this
Agreement. 
 4. Non-Admission of Liability. Executive expressly recognizes that this Agreement shall not in any
way be construed as an admission by AOS or any of the other Released Parties of any unlawful or wrongful acts whatsoever against Executive or any other person or entity. AOS and each of the Released Parties expressly denies any violation of any
policy or procedure, or of any state or federal law or regulation. AOS and each of the Released Parties also specifically denies any liability to or wrongful acts against Executive, or any other person, on the part of themselves or any other
employees or agents of AOS. This Agreement shall not be admissible in any proceeding as evidence of or any admission by AOS of any violation of any law or regulation or wrongful act. This Agreement may, however, be introduced in any proceeding to
enforce this Agreement. 
 5. No Filing of Claims. Executive specifically represents that he has no pending
complaints or charges against AOS or any of the other Released Parties with any state or federal court or any local, state or federal agency, division or department based on any events occurring prior to the date of execution of this Agreement.

 6. Advice of Counsel. Executive acknowledges that he has been given twenty-one days (21) to seek the
advice of counsel and to consider the effects of this Agreement upon his legal rights (the “Consideration Period”). To the extent that Executive has signed the Agreement without obtaining the advice of counsel or before expiration of the
Consideration Period, Executive acknowledges that he has done so voluntarily with a full understanding of the Agreement and its effect upon his legal rights. Any discussion between Executive and AOS or any of the Released Parties concerning the
terms and conditions of this Agreement does not extend the Consideration Period. 
 7. Revocation
Period. Executive acknowledges that he has been informed that, after he signs this Agreement, he has the right to revoke his signature for a period of seven days (7) from the date that he signs the Agreement. To be effective, the
revocation must be in writing, signed by Executive, and delivered to Vice President of Human Resources at 495 Mercury Drive, Sunnyvale, California 94085 before the close of business on the seventh day (7th) day following the date Executive signs this Agreement.
Executive acknowledges and agrees that AOS has no obligation to comply with the terms of this Agreement until the Revocation Period has expired without revocation. 
 8. Confidentiality. Executive consents and agrees that he will not, at any time, disclose the existence of this Agreement, the terms of his severance benefits and/or the alleged facts
or circumstances giving rise to any actual or alleged claims or the Action to any person, firm, Company, association, or entity or the press or media for any reason or purpose whatsoever, other than to his attorney, his immediate family and to his
accountant or financial advisor for tax purposes. If Executive is served with any subpoena, court order, or other legal process seeking disclosure of any such information, Executive shall promptly send to AOS, within forty-eight (48) hours, via
facsimile at (408) 830 9749, such subpoena, court order, or other legal process so that AOS may exercise any applicable legal remedies. Executive agrees and acknowledges that a violation of this paragraph by Executive shall be a material breach
of this Agreement. 
  

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 9. Delivery of Documents. Executive represents and warrants that he has not
removed any documents, records or other information, including any such documents, records or information that are or were electronically stored, from the premises of AOS. Executive acknowledges that such documents, records and other information are
the exclusive property of AOS or its subsidiaries or affiliates. 
 10. Remedies For Breach Of This Agreement.

 (a) Injunctive Relief. In the event of a breach of the provisions of this Agreement,
Executive agrees that any remedy at law for any breach or threatened breach of the provisions of such paragraphs and the covenants set forth therein, will be inadequate and, accordingly, each party hereby stipulates that the other is entitled to
obtain injunctive relief for any such breaches or threatened breaches (without the necessity of posting a bond). The injunctive relief provided for in this paragraph is in addition to, and is not in limitation of, any and all other remedies at law
or in equity otherwise available to the applicable party. 
 (b) Remedies Cumulative. The
remedies in this paragraph are not exclusive, and the parties shall have the right to pursue any other legal or equitable remedies to enforce the terms of this Agreement. 
 (c) Governing Law; Consent to Jurisdiction. This Agreement shall be deemed to be a contract made under,
and shall be construed in accordance with, the laws of the State of California, without giving effect to conflict of laws principles thereof. All questions concerning the construction, validity, and interpretation of this Agreement shall be governed
by and construed in accordance with the domestic laws of the State of California, without giving effect to any choice of law or conflict of law provision that would cause the application of the laws of any jurisdiction other than the State of
California. Each of the parties hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the courts of the State of California or the United States District Court for the Northern District of California for any
litigation, proceeding or action arising out of or relating to this Agreement (and agrees not to commence any litigation, proceeding or action relating thereto except in such courts). Each of the parties hereby irrevocably and unconditionally waives
any objection to the laying of venue of any litigation, proceeding or action arising out of this agreement or thereby in the courts of the State of California or the United States District Court for the Northern District of California and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such litigation, proceeding or action brought in any such court has been brought in an inconvenient forum. 
 11. Counsel. The parties hereby acknowledge that they have had the reasonable opportunity to consult with attorneys of
their own choice concerning the terms and conditions of this Agreement, that they have read and understand this Agreement, that they are fully aware of the contents of this Agreement and that they enter into this agreement freely and knowingly and
with a full understanding of its legal effect. 
 12. Entire Agreement. This is the entire agreement
between Executive and AOS with respect to the subject matter hereof and the Agreement supersedes any previous negotiations, agreements and understandings. Executive acknowledges that he has not relied on any oral or written representations by AOS
(or its counsel) or any of the other Released Parties to induce him to sign this Agreement, other than the terms of this Agreement. No modifications of this Agreement can be made except in writing signed by Executive and AOS. 
 13. Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under existing or
future laws effective during the term of this Agreement, such provisions shall be fully several, the Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement, and
the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or
unenforceable provision, there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 
  

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 14. Ambiguities. Attorneys for both parties have participated in the
negotiation of this Agreement and, thus, it is understood and agreed that the general rule that ambiguities are to be construed against the drafter shall not apply to this Agreement. In the event that any language of this Agreement is found to be
ambiguous, each party shall have an opportunity to present evidence as to the actual intent of the parties with respect to any such ambiguous language. 
 15. Waiver. No waiver by any party of any breach of any term or provision of this Agreement shall be a waiver of any preceding, concurrent or succeeding breach of this Agreement or of any
other term or provision of this Agreement. No waiver shall be binding on the part of, or on behalf of, any other party entering into this Agreement. 
 16. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, all of which together shall constitute one and the same instrument,

 THE SIGNATORIES HAVE CAREFULLY READ THIS ENTIRE AGREEMENT. ITS CONTENTS HAVE BEEN FULLY EXPLAINED TO THEM BY THEIR ATTORNEYS.
THE SIGNATORIES FULLY UNDERSTAND THE FINAL AND BINDING EFFECT OF THIS AGREEMENT. THE ONLY PROMISES MADE TO ANY SIGNATORY ABOUT THIS AGREEMENT, AND TO SIGN THIS AGREEMENT, ARE CONTAINED IN THIS AGREEMENT. THE SIGNATORIES ARE SIGNING THIS AGREEMENT
VOLUNTARILY. 
 PLEASE READ CAREFULLY. 
 THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE 
 INCLUDES A RELEASE OF
KNOWN AND UNKNOWN CLAIMS. 
  

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 IN WITNESS WHEREOF, the parties have executed this General Settlement and Release
Agreement on the dates set forth below. 
  

			
	ALPHA AND OMEGA SEMICONDUCTOR LIMITED:
		
	By:	 	 
		
	Title:	 	 
		
	Dated:	 	 
	
	EXECUTIVE:
		
		 	 
		
	Dated:	 	 

 [Signature Page to the
General Settlement and Release Agreement]

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