Document:

exv10w2

 

Exhibit 10.2

	 	 	 
	 

	 	Alliance Semiconductor
	 
	 	 
	Notice of Grant of Stock

	 	2575 Augustine Dr.
	Options

	 	Santa Clara, CA 95054
	and Option Agreement
	 	 

	 	 	 	 	 
	 
	 	 	 	 
	Melvin L. Keating

	 	Option Number:
	 	 
	c/o Alliance Semiconductor

	 	Plan:
	 	0002
	2575 Augustine Dr.
	 	 	 	 
	Santa Clara, CA United States 95054

	 	ID:
	 	 
	 
	 	 	 	 

Effective 12/1/2005, you have been granted a(n) Incentive Stock Option to buy 100,000 shares of
Alliance Semiconductor (the Company) stock at $2.9200 per share.

The total option price of the shares granted is $292,000.00

Shares in each period will become fully vested on the date shown.

	 	 	 	 	 	 	 
	Shares	 	Vest Type	 	Full Vest	 	Expiration
	20,000

	 	On Vest Date
	 	12/1/2006
	 	11/30/2015
	20,000

	 	On Vest Date
	 	12/1/2007
	 	11/30/2015
	20,000

	 	On Vest Date
	 	12/1/2008
	 	11/30/2015
	20,000

	 	On Vest Date
	 	12/1/2009
	 	11/30/2015
	20,000

	 	On Vest Date
	 	12/1/2010
	 	11/30/2015

By your signature and the Company’s signature below, you and the Company agree that these options
are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as
amended and the Option Agreement, all of which are attached and made a part of this document.

	 	 	 	 	 
	/s/ BRYANT RILEY, Compensation Committee Member
	 	 
	/s/ ALAN HOWE, Compensation Committee Member	December 1, 2005
	 
	 	 	 	 
	Alliance Semiconductor

	 	Date	 	 
	 
	/s/ Melvin L. Keating

	 	December 1, 2005
	 
	Melvin L. Keating

	 	Date	 	 

 

 

Option Agreement

This Option Agreement (“Option Agreement”) and the attached Notice of Grant of Stock Options and
Option Agreement (“Notice”), forming one agreement (“Agreement”), is entered into as of effective
date specified in the Notice (“Effective Date”) by and between Alliance Semiconductor Corporation,
a Delaware corporation with executive offices at 2575 Augustine Drive, Santa Clara, California
95054 (“Company”) and the optionee specified in the Notice (“Optionee”).

1. Grant of Option

The Company hereby grants to the Optionee an option (“Option”) to purchase the total number of
shares of common stock, $0.0l par value, of the Company set forth in the Notice (“Shares”) at the
exercise price per share set forth in the Notice (“Exercise Price”), subject to all of the terms
and conditions of this Agreement and the Company’s 2002 Stock Option Plan, as amended to the date
hereof (“Plan”). If designated as an Incentive Stock Option in the Notice, this Option is intended
to qualify as an “incentive stock option” (“ISO”) within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (“Revenue Code”). Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to them in the Plan.

2. Exercise Period of Option

Subject to the terms and conditions of the Plan and this Option Agreement, this Option shall become
exercisable as to portions of the Shares as described in the Notice, provided, however, that this
Option shall expire on the Expiration Date set forth above and must be exercised, if at all, on or
before the Expiration Date.

3. Restriction on Exercise

This Option may not be exercised unless such exercise is in compliance with the Securities Act of
1933 and all applicable state securities laws as they are in effect on the date of exercise, and
the requirements of any stock exchange or national market system on which the Company’s common
stock may be listed at the time of exercise. Optionee understands that the Company is under no
obligation to register, qualify or list the Shares with the Securities and Exchange Commission
(“SEC”), any state securities commission or any stock exchange to effect such compliance.

4. Termination of Option

Except as provided below in this Paragraph, this Option shall terminate and may not be exercised if
Optionee ceases to be employed by the Company or any Parent or Subsidiary of the Company (or, in
the case of a nonqualified stock option, an Affiliate of the Company). Optionee shall be considered
to be employed by the Company or any Parent, Subsidiary or Affiliate of the Company for all
purposes under Paragraph 2 and this Paragraph 4 if Optionee is an officer, director or full-time
employee of the Company or of any Parent, Subsidiary or Affiliate of the Company or if the
Committee determines that Optionee is rendering substantial services as a part-time employee,
consultant, contractor or adviser to the Company or to any Parent, Subsidiary or Affiliate of the
Company. The Committee shall have discretion to determine whether Optionee has ceased to be
employed by the Company or by any Parent, Subsidiary or Affiliate of the Company and the effective
date on which such employment terminated (the “Termination Date”).

 

4.1 Termination Generally

If Optionee ceases to be employed by the Company or by any Parent, Subsidiary or
Affiliate of the Company for any reason except death or disability, this Option, to the
extent (and only to the extent) that it would have been exercisable by Optionee on the
Termination Date, may be exercised by Optionee within thirty (30) days after the
Termination Date, but in no event later than the Expiration Date.

4.2 Death or Disability

If Optionee’s employment with the Company or with any Parent, Subsidiary or Affiliate of
the Company is terminated because of the death of Optionee or the disability of Optionee
within the meaning of Section 22(e)(3) of the Revenue Code, this Option, to the extent
(and only to the extent) that it would have been exercisable by Optionee on the
Termination Date, may be exercised by Optionee (or by Optionee’s legal representative)
within six (6) months after the Termination Date, but in no event later than the
Expiration Date.

4.3 No Right to Employment

Nothing in the Plan or in this Option Agreement shall confer on Optionee any right to
continue in the employ of, or other relationship with, the Company or with any Parent,
Subsidiary or Affiliate of the Company or limit in any way the right of the Company or
of any Parent, Subsidiary or Affiliate of the Company to terminate Optionee’s employment
or other relationship at any time, with or without cause.

5. Manner of Exercise

5.1 Exercise Agreement

This Option shall be exercisable by delivery to the Company of an executed written Stock
Option Exercise Agreement in the form attached hereto, or in such other form as may be
approved by the Company (“Exercise Agreement”), which shall set forth Optionee’s
election to exercise some or all of this Option, the number of Shares being purchased,
any restrictions imposed on the Shares and such other representations and agreements as
may be required by the Company to comply with applicable securities laws.

5.2 Exercise Price

Such Exercise Agreement shall be accompanied by full payment of the Exercise Price for
the Shares being purchased. Payment for the Shares may be made in cash (by check) or,
where permitted by law:

	5.2.1	 	by cancellation of indebtedness of the Company to Optionee;

 

	5.2.2	 	where approved by the Committee, by surrender of shares of common stock of
the Company having a Fair Market Value equal to the exercise price of the
Option that have been owned by Optionee for more than six (6) months (and
which have been paid for within the meaning of SEC Rule 144 and, if such
Shares were purchased from the Company by use of a promissory note, such
note has been fully paid with respect to such shares), or were obtained by
Optionee in the open public market; and are clear of all liens, claims,
encumbrances and security interests (provided, however, that in the case
of ISOs, the Committee’s approval must have been made at the time of
grant);

	5.2.3	 	by waiver of compensation due or accrued to Optionee for services rendered;

	5.2.4	 	provided that a public market for the Company’s stock exists, through a
“same day sale” commitment from Optionee and a broker-dealer that is a
member of the National Association of Securities Dealers (an “NASD
Dealer”) whereby Optionee irrevocably elects to exercise the Option and to
sell a portion of the Shares so purchased to pay for the Exercise Price
and whereby the NASD Dealer irrevocably commits upon receipt of such
Shares to forward the Exercise Price directly to the Company; or

	5.2.5	 	by any combination of the foregoing.

5.3 Withholding Taxes

Prior to the issuance of the Shares upon exercise of this Option, Optionee must pay or
make adequate provision for any applicable federal, state or local withholding
obligations of the Company. Optionee may provide for payment of Optionee’s minimum
statutory withholding taxes upon exercise of the Option by requesting that the Company
retain Shares with a Fair Market Value equal to the minimum amount of taxes required to
be withheld, all as set forth in Section 6.3 of the Plan. In such case, the Company
shall issue the net number of Shares to Optionee by deducting the Shares retained from
the Shares exercised.

5.4 Issuance of Shares

Provided that such Exercise Agreement and payment are in form and substance satisfactory
to counsel for the Company, the Company shall cause the Shares to be issued in the name
of Optionee, Optionee’s legal representative or Optionee’s authorized assignee. Optionee
hereby agrees that in the event that Optionee elects to pay for the Shares by means of a
“same day sale” as set forth in Section 5.2.4, Optionee shall cause the NASD Dealer to
pay the Company the Exercise Price for the Shares. The Company hereby agrees to permit
a “same day sale” sufficient to enable the NASD Dealer to pay the Company the Exercise
Price for the Shares.

 

6. Market Standoff Agreement

Optionee agrees in connection with any registration of the Company’s securities that, upon the
request of the Company or the underwriters managing any public offering of the Company’s
securities, Optionee will not sell or otherwise dispose of any Shares or any other securities of
the Company without the prior written consent of the Company or such underwriters, as the case may be,
for such period of time from the effective date of such registration as the Company or the
underwriters may specify for employee shareholders generally. Optionee understands and agrees that,
in order to ensure compliance with the market standoff agreement, the Company may issue appropriate
“stop-transfer” instructions to its transfer agent.

7. Notice of Disqualifying Disposition of ISO Shares

If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise disposes of
any of the Shares acquired pursuant to the ISO within the date two years after the Date of Grant,
or the date one year after exercise of the ISO with respect to the Shares to be sold or disposed,
Optionee shall immediately notify the Company in writing of such disposition. Optionee acknowledges
and agrees that Optionee may be subject to income tax withholding by the Company on the
compensation income recognized by Optionee from any such early disposition by payment in cash (or
in Shares, to the extent permissible under Section 5.3) or out of the current wages or other
earnings payable to Optionee. Optionee hereby authorizes his/her broker(s) to provide the Company,
promptly at the Company’s request, with any information concerning the Shares, now or previously in
Optionee’s account(s) with such broker(s), as the Company may request. Optionee agrees that this
authorization may not be revoked or modified in any manner except pursuant to a writing signed by
both Optionee and the Company.

8. Nontransferability of Option

If this Option is an ISO, or if Optionee is an Insider subject to Section 16(b) of the Securities
Exchange Act of 1934, then this Option may not be transferred in any manner other than by will or
by the law of descent and distribution and may be exercised during the lifetime of Optionee only by
Optionee. Otherwise, this Option may only be transferred to Optionee’s immediate family, to a trust
for the benefit of Optionee or Optionee’s immediate family, or to a charitable entity qualified
under Revenue Code Section 501(c), where “immediate family” shall mean spouse, lineal descendant or
antecedent, brother or sister. The terms of this Option shall be binding upon the executors,
administrators, successors and assigns of Optionee.

9. Tax Consequences

Set forth below is a brief summary as of the date this form of Option Agreement was adopted of some
of the federal and California tax consequences of exercise of this Option and disposition of the
Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE
SHARES.

9.1 Exercise of ISO

If this Option qualifies as an ISO, there will be no regular federal
income tax liability or California income tax liability upon the exercise
of the Option, although the excess, if any, of the Fair Market Value of
the Shares on the date of exercise over the Exercise Price will be
treated as an adjustment to alternative minimum taxable income for
federal income tax purposes and may subject Optionee to an alternative
minimum tax liability in the year of exercise.

 

9.2 Exercise of Nonqualified Stock Option

If this Option does not qualify as an ISO, there may be a regular federal
income tax liability and a California income tax liability upon the
exercise of the Option. Optionee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price. The Company may be required to withhold
from Optionee’s compensation or collect from Optionee and pay to the
applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise.

9.3 Disposition of Shares

In the case of a nonqualified stock option (an “NQSO”), if Shares are
held for more than one year before disposition, any gain on disposition
of the Shares will be treated as long-term capital gain for federal and
California income tax purposes. In the case of an ISO, if Shares are held
for more than one year after the date of exercise and more than two years
after the Date of Grant, any gain on disposition of the Shares will be
treated as long-term capital gain for federal and California income tax
purposes. If Shares acquired pursuant to an ISO are disposed of within
such one year or two year periods (a “disqualifying disposition”), gain
on such disqualifying disposition will be treated as compensation income
(taxable at ordinary income rates) to the extent of the excess, if any,
of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price (the “Spread”), or, if less, the difference between the
amount realized on the sale of such Shares and the Exercise Price. Any
gain in excess of the Spread shall be treated as capital gain.

10. Change of Control Acceleration. Notwithstanding the above, in the event of a Change of
Control (as defined below) and irrespective of whether this Option is assumed, substituted or
terminated in connection with the transaction, the vesting and exercisability of this Option shall
accelerate such that this Option shall become vested and exercisable to the extent of 100% of the
Shares then unvested, effective immediately prior to the consummation of the transaction. For
purposes of this Agreement, a “Change of Control” means:

	 	(i)	 	a sale, transfer or disposition of all or substantially all of the Company’s assets
other than to (A) a corporation or other entity of which at least a majority of its
combined voting power is owned directly or indirectly by the Company, (B) a corporation or
other entity owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of Company common stock, or (C) a
continuing or surviving entity described in subsection (ii) below;
	 
	 	(ii)	 	any merger, consolidation or other business combination transaction of the Company with
or into another corporation, entity or person, other than a transaction in which the
holders of at least a majority of the shares of voting capital stock of the Company
outstanding immediately prior to such transaction continue to hold (either by such shares
remaining outstanding or by their being converted into shares of voting capital stock of
the surviving entity) a majority of the total voting power represented by the shares of voting capital stock of the Company (or the surviving entity) outstanding
immediately after such transaction; or

 

	 	(iii)	 	the direct or indirect acquisition (including by way of a tender or exchange offer) by
any person, or persons acting as a group, of beneficial ownership or a right to acquire
beneficial ownership of shares representing a majority of the voting power of the then
outstanding shares of capital stock of the Company; provided that the term “person” shall
not include the Company or those entities described in subsections (i)(A) and (B) above.
	 
	 	 	 	Notwithstanding anything stated herein, a transaction shall not constitute a “Change of
Control” if its sole purpose is to change the state of the Company’s incorporation, to
create a holding company that will be owned in substantially the same proportions by the
persons who hold the Company’s securities immediately before such transaction, or to
consummate an equity financing approved by the Board.

11. Interpretation

Any dispute regarding the interpretation of this Option Agreement shall be submitted by Optionee or
the Company to the Committee for review. The resolution of such a dispute by the Board or Committee
shall be final and binding on the Company and on Optionee.

12. Privileges of Stock Ownership

Optionee shall not have any of the rights of a stockholder with respect to any Shares until
Optionee exercises the Option and pays the Exercise Price.

13. Notices

All notices required or permitted by this Agreement must be in writing and shall be deemed to have
been duly given if delivered by hand; mailed, postage prepaid, by certified or registered mail,
return receipt requested; or deposited with any return receipt express courier, prepaid; and
addressed to Company at the address listed above or Optionee at their address listed in the Notice.
Optionee shall be obligated to timely notify the Company in writing of any change in Optionee’s
address. Notice of change of address shall be effective only when done in accordance with this
subparagraph. All notices shall be deemed to have been given or delivered upon: personal delivery;
three days after deposit in the United States mail by certified or registered mail, return receipt
requested; or one business day after deposit with any return receipt express courier (prepaid).

14. Successors and Assigns

The Company may assign any of its rights under this Option Agreement. This Option Agreement shall
be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to
the restrictions on transfer set forth herein, this Option Agreement shall be binding upon Optionee
and Optionee’s heirs, executors, administrators, legal representatives, successors and assigns.

15. Entire Agreement

The Notice, the Plan, and the Exercise Agreement are incorporated herein by this reference. This
Option Agreement, the Notice, the Plan and the Exercise Agreement (the “Stock Agreements”) constitute the entire agreement of the parties hereto and supersede all prior undertakings and
agreements, oral or written, with respect to the subject matter hereof. The Stock Agreements may
not be contradicted by evidence of any prior or contemporaneous agreement. To the extent that the
policies and procedures of the Company apply to Optionee and are inconsistent with the terms of the
Stock Agreements, the provisions of the Stock Agreements shall control.

 

16. Amendments and Waivers

None of the Stock Agreements may be modified, amended, or terminated except by an instrument in
writing, signed by each of the parties (in the case of the Company, such instrument must be signed
by the President of the Company to be effective). No failure to exercise and no delay in exercising
any right, remedy, or power under any of the Stock Agreements shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, remedy, or power under any of the Stock
Agreements preclude any other or further exercise thereof, or the exercise of any other right,
remedy, or power provided herein or by law or in equity. All rights and remedies, whether conferred
by any of the Stock Agreements, by any other instrument or by law, shall be cumulative, and may be
exercised singularly or concurrently.

17. Severability and Enforcement

If any provision of this Agreement is held invalid, illegal or unenforceable in any respect
(“Impaired Provision”), (a) such Impaired Provision shall be interpreted in such a manner as to
preserve, to the maximum extent possible, the intent of the parties, (b) the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby,
and (c) such decision shall not affect the validity, legality or enforceability of such Impaired
Provision under other circumstances. The parties agree to negotiate in good faith and agree upon a
provision to substitute for the Impaired Provision in the circumstances in which the Impaired
Provision is invalid, illegal or unenforceable.

18. Attorneys’ Fees and Costs

In any legal action, arbitration, or other proceeding brought to enforce or interpret the terms of
any of the Agreements, the substantially prevailing party shall be entitled to recover reasonable
attorneys’ fees and costs.

19. Governing Law and Jurisdiction

The Stock Agreements shall be governed by and construed in accordance with the law of the State of
California, without reference to that body of law concerning choice of law or conflicts of law,
except that the General Corporation Law of Delaware (“GCLD”) shall apply to all matters governed by
the GCLD, including without limitation matters concerning the validity of grants of stock options
and actions of the Company’s board of directors or any committee thereof.

20. Action by the Company

All actions required or permitted to be taken under any of the Stock Agreements by the Company,
including without limitation, exercise of discretion, consents, waivers, and amendments to any of
the Agreements, shall be made and authorized only by the President or by his or her representative
specifically authorized to fulfill these obligations under the Stock Agreements.

 

21. No Duty to Disclose

Optionee acknowledges and agrees that neither the Company nor any of the Company’s officers,
directors, shareholders, employees, agents or representatives has any duty or obligation to
disclose to Optionee any information whatsoever, including but not limited to information
concerning the Company that might if made public affect the value of the Shares. Such information
includes without limitation any information concerning the Company’s actual or potential financial
performance, actual or potential material contracts to which the Company is or may become a party,
or actual or potential material transactions that involve or may involve the Company, including but
not limited to plans to effect a merger or to acquire or dispose of a material amount of assets.
Optionee acknowledges and understands that he or she (a) might exercise his or her Option (or a
portion thereof) prior to the public dissemination of such information, and that the value of the
Shares may decrease after the public dissemination of such information, or (b) might exercise his
or her Option (or a portion thereof) and sell, pledge or encumber the Shares (or a portion thereof)
prior to the public dissemination of such information, and that the value of the Shares may
increase after the public dissemination of such information; and Optionee acknowledges and agrees
that he or she will not bring or participate in any claim whatsoever against the Company or against
any of the Company’s officers, directors, shareholders, employees, agents or representatives
related to the failure to have disclosed such information prior to Optionee’s exercise and/or sale,
pledge or encumbrance.

22. Agreement to Arbitrate

Optionee and the Company recognize that differences may arise between them during or following
Optionee’s employment with the Company, and that those differences may or may not be related to the
grant of options herein or to Optionee’s employment. Optionee understands and agrees that by
entering into this Option Agreement, Optionee anticipates the benefits of a speedy, impartial
dispute-resolution procedure of any such differences. As used in this Section 22, the “Company”
shall also refer to all benefit plans, the benefit plans’ sponsors, fiduciaries, administrators,
affiliates, and all successors and assigns of any of them.

22.1 Arbitrable Claims

ALL DISPUTES BETWEEN OPTIONEE (AND HIS SUCCESSORS AND ASSIGNS) AND THE
COMPANY (AND ITS AFFILIATES, SHAREHOLDERS, DIRECTORS, OFFICERS AND
ASSIGNS) RELATING IN ANY MANNER WHATSOEVER TO THE EMPLOYMENT OR
TERMINATION OF OPTIONEE, INCLUDING WITHOUT LIMITATION ALL DISPUTES
ARISING UNDER ANY OF THE STOCK AGREEMENTS (“ARBITRABLE CLAIMS”) SHALL BE
RESOLVED BY ARBITRATION. Arbitrable Claims shall include, but are not
limited to, contract (express or implied) and tort claims of all kinds,
as well as all claims based on any federal, state, or local law,
statute, or regulation (including but not limited to claims alleging
unlawful harassment or discrimination in violation of Title VII and/or
Title IX of the U.S. Code, of the Age Discrimination in Employment Act,
of the Americans with Disabilities Act, of state statute, or otherwise),
excepting only claims under applicable workers’ compensation law and
unemployment insurance claims. Arbitration shall be final and binding
upon the parties and shall be the exclusive remedy for all Arbitrable
Claims. Except as provided in the following sentences of this Paragraph
21(a).

 

22.2 Arbitration Procedure

	22.2.1	 	American Arbitration Association Rules; Initiation of Arbitration;
Location of Arbitration. Arbitration of Arbitrable Claims shall be in
accordance with the Employment Dispute Resolution Rules of the
American Arbitration Association (“AAA Employment Rules”), except as
provided otherwise in this Option Agreement. Arbitration shall be
initiated by providing written notice to the other party with a
statement of the claim(s) asserted, the facts upon which the claim(s)
are based, and the remedy sought. The arbitration shall take place in
San Jose, California or in the county in which the claims arose.
	 
	22.2.2	 	Selection of Arbitrator. All disputes involving Arbitrable Claims
shall be decided by a single arbitrator (“Arbitrator”), who shall be
selected as follows. The American Arbitration Association (“AAA”)
shall give each party a list of eleven (11) arbitrators drawn from its
panel of employment arbitrators. Each party may strike all names on
the list it deems unacceptable. If only one common name remains on the
lists of all parties, that individual shall be designated as the
Arbitrator. If more than one common name remains on the lists of all
parties, the parties shall strike names alternately until only one
remains. If no common name remains on the lists of all parties, the
AAA shall furnish an additional list or lists until an Arbitrator is
selected. Notwithstanding any other provision herein to the contrary,
if a party strikes all eleven names on each of the first and the
second lists provided by the AAA, such party shall be deemed to have
stricken such names in bad faith, and all twenty-two names on the
lists shall be deemed acceptable to such party, and the other party
shall select the Arbitrator.
	 
	22.2.3	 	Conduct of the Arbitration.

22.2.3.1 Discovery. To help prepare for the arbitration, Optionee and the Company shall be
entitled to conduct that discovery that the arbitrator deems necessary to enable the party to
reasonably investigate their claims or defenses. At least thirty (30) days before the arbitration,
the parties must exchange lists of witnesses, including any expert witnesses, and copies of all
exhibits intended to be used at the arbitration.

22.2.3.2 Authority. The Arbitrator shall have jurisdiction to hear and rule on pre-hearing
disputes and is authorized to hold pre-hearing conferences by telephone or in person as the
Arbitrator deems necessary. The Arbitrator shall have the authority to entertain a motion to
dismiss and/or a motion for summary judgment by any party and shall apply the standards governing
such motions under the Federal Rules of Civil Procedure. The Arbitrator shall apply the substantive
law (and the law of remedies, if applicable) of the state in which the claim arose, or federal law,
or both, as applicable to the claim(s) asserted. The Arbitrator shall have the authority to award
equitable relief, damages, costs and fees as provided by the law for the particular claim(s)
asserted. The arbitrator shall not have the power to award remedies or relief that a California
court could not have awarded. The Federal Rules of Evidence shall apply. The burden of proof shall
be allocated as provided by applicable law. The Arbitrator, and not any federal, state, or local
court or agency, shall have exclusive authority to resolve any dispute
relating to the interpretation, applicability, enforceability or formation of the Agreements,
including but not limited to any claim that all or any part of any of the Agreements is void or
voidable. The arbitration shall be final and binding upon the parties.

 

22.2.3.3 Costs. Either party, at its expense, may arrange for and pay the cost of a court reporter
to provide a stenographic record of the proceedings. If the Arbitrator orders a stenographic
record, the parties shall split the cost. Except as otherwise provided in this Paragraph and in
Paragraph 18, Optionee and the Company shall equally share the fees and costs of the arbitration
and the Arbitrator except that Optionee shall not be required to pay any costs that the Optionee
would not be obligated to pay if his claim as brought in court.

22.3 Enforceability

Either party may bring an action in any court of competent jurisdiction to compel arbitration under
this Option Agreement and to enforce an arbitration award. Except as provided above, neither party
shall initiate or prosecute any lawsuit or administrative action in any way related to any
Arbitrable Claim. The Federal Arbitration Act shall govern the interpretation and enforcement of
this Paragraph.

23. Acceptance

23.1 Optionee hereby acknowledges by signing the Notice:

I have received a copy this Option Agreement, the Notice, the Plan and
Exercise Agreement; I have had the opportunity to consult legal counsel
in regard to the Stock Agreements, and have availed myself of that
opportunity to the extent I wish to do so (I understand the Company’s
attorneys represent the Company and not myself, and I have not relied on
any advice from the Company’s attorneys); I have read and understand
this Agreement; I AM FULLY AWARE OF LEGAL EFFECT OF THIS OPTION
AGREEMENT, INCLUDING WITHOUT LIMITATION THE EFFECT OF PARAGRAPH 21
HEREOF CONCERNING ARBITRATION; and I have entered into this Agreement
freely and voluntarily and based on my own judgment and not on any
representations or promises other than those contained in this
Agreement.

	23.2	 	Optionee accepts this Option subject to all the terms and conditions of
the Plan and this Option Agreement. Optionee acknowledges that there may
be adverse tax consequences upon exercise of this Option or disposition
of the Shares and that Optionee should consult a tax adviser prior to
such exercise or disposition.

 

Exercise Agreement

I hereby elect to purchase the number of shares of Common Stock of Alliance Semiconductor
Corporation, a Delaware corporation (the “Company”) as set forth below:

			
	Optionee:                                                                                           
	 	Number of Shares Purchased:                                                             
	Social Security
Number:                                                                   
	 	Purchase Price Per
Share: $                                                                
	Address:
                 
                                                                         
	 	Aggregate Purchase Price: $

                                                             
	               
                 
                                                                         
	 	 

Date of Optionee’s Stock Option Agreement: ____________________ (the “Option Agreement”)

	 	 	 	 	 
	Type of Option:

	 	 ̈ Incentive Stock Option
	 	Exact Name of Title Desired for Shares:
	(check one)

	 	 ̈ Nonqualified Stock Option
	 	 
	 

	 	 	 	 

Optionee hereby delivers to the Company the Aggregate Purchase Price, to the extent permitted in
the Option Agreement, as follows (check as applicable and complete):

 ̈ in cash or by check in the amount of $             ;

 ̈ where approved by the Committee, by delivery of fully-paid, nonassessable and vested shares
of the common stock of the Company owned by Optionee for at least six (6) months prior to the date
hereof (and which have been paid for within the meaning of SEC Rule 144), or obtained by Optionee
in the open public market, and owned free and clear of all liens, claims, encumbrances or security
interests, valued at the current Fair Market Value of $             per share
(provided, however, that in the case of ISOs, such Committee approval must have been made at the
time of grant);

 ̈ by cancellation of indebtedness of the Company to Optionee in the amount of $             ;

 ̈ by the waiver hereby of compensation due or accrued to Optionee for services rendered in
the amount of $             ; or

 ̈ through a “same-day-sale” commitment, delivered herewith, from Optionee and the NASD Dealer
named therein, in the amount of $             .

Market Standoff Agreement. Optionee agrees in connection with any registration of the Company’s
securities that, upon the request of the Company or the underwriters managing any public offering
of the Company’s securities, Optionee will not sell or otherwise dispose of any Shares or any other
securities of the Company without the prior written consent of the Company or such underwriters, as
the case may be, for such period of time from the effective date of such registration as the
Company or the underwriters may specify for employee shareholders generally. Optionee understands
and agrees that, in order to ensure compliance with the market standoff agreement, the Company may
issue appropriate “stop-transfer” instructions to its transfer agent.

 

 

Tax Consequences. OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER ADVERSE TAX CONSEQUENCES AS A
RESULT OF OPTIONEE’S PURCHASE OR DISPOSITION OF THE SHARES. OPTIONEE REPRESENTS THAT OPTIONEE HAS
CONSULTED WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR
DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE.

Entire Agreement. The Company’s 2002 Stock Option Plan (“Plan”) the Option Agreement and Notice of
Grant of Stock Options and Option Agreement (“Notice”) are incorporated herein by reference. This
Exercise Agreement, the Plan, the Option Agreement and the Notice constitute the entire agreement
of the parties with respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee, oral or written, with respect to the
subject matter hereof, and may not be modified except in a writing signed by the President of the
Company and Optionee.

	 	 	 	 	 	 	 
	Date:

	 	 	 	Signature of Optionee:exv10w01

 

Exhibit 10.01

     

RELOCATION POLICY

EXECUTIVE

 

			
	               EXECUTIVE
	 	November 2005               

 

 

Congratulations on your upcoming relocation with Intuit.

Although this is an exciting time, Intuit recognizes the disruption a move can cause. Moving in
today’s environment is much more complex and demanding than ever before.

There are numerous personal issues to be considered. Recognizing this, Intuit has engaged Plus
Relocation Services, Inc. to assist you with your relocation needs. Upon receipt of your signed
offer letter and the Repayment Agreement, Intuit will contact PLUS of your approved relocation.
PLUS will in turn contact you within 24 hours of this notification. A PLUS Personal Move Manager
will also outline the information PLUS needs from you to ensure a smooth process for your move.

We urge you to become fully involved in your move and work closely with the professionals Intuit
has made available to you. Planning your move with a clear understanding of Intuit’s relocation
policy by reading these guidelines will also help to avoid unpleasant surprises such as
non-reimbursable costs.

The most successful moves are those that are well planned. Therefore, it is important for you to
form a partnership with Intuit and PLUS in this process.

Best wishes for a successful relocation!

 

			
	               EXECUTIVE
	 	November 2005               

 

 

RELOCATION REPAYMENT AGREEMENT

Intuit’s relocation program is designed to help you have a smooth transition to your new
location. The program reimburses you for many living, travel and most moving expenses associated
with your relocation, as well as assisting with certain estimated tax liabilities.

Eligibility for relocation assistance under the executive relocation policy requires the following:

	 	 ̈	 	 You are a director or officer new hire, or a director or officer transferring locations
at Intuit’s request.
	 
	 	 ̈	 	 The distance between your new work location and your current residence is fifty (50)
miles further than the distance between your current residence and the old work location.
	 
	 	 ̈	 	 All relocation expenses must be incurred and submitted for reimbursement within one (1)
year from the effective date of your move/transfer.

Moving an employee requires a substantial investment on Intuit’s part. Therefore, if you
voluntarily resign from Intuit within one (1) year of your transfer date or during your relocation,
no further relocation benefits, including reimbursements, will be paid to you and you will be
required to reimburse Intuit for the cost of the relocation per the terms and conditions outlined
in your Relocation Repayment Agreement. Please sign and return this Agreement to Intuit, as
benefits will not be processed without this being completed.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

TAX INFORMATION 

Tax Classification of Expenses

Intuit follows strict Federal guidelines for reporting expenses associated with an employee’s
relocation. All relocation reimbursements provided to you will be categorized into two classes:
(1) expenses which are not classified as compensation and not subject to withholding taxes, and (2)
expenses which are reportable as compensation and subject to withholding taxes. Examples of
expenses in each category are provided below:

Category 1 (not necessary to report as income on W-2)

	 	 ̈	 	 The cost of shipment and 30 day storage of your household goods.
	 	 ̈	 	 Most travel & lodging expenses relating to reporting to new location.

Category 2 (expenses which must be reported as income on W-2 and taxes paid)

	 	 ̈	 	 Storage over 30 days
	 
	 	 ̈	 	 Home Finding Trip ( including travel , lodging and meals ) 
	 
	 	 ̈	 	 Temporary living
	 
	 	 ̈	 	 All meals during your final move en route to your new home
	 
	 	 ̈	 	 All other relocation reimbursements, including lump sum relocation allowances and some
direct reimbursement of expenses for selling and/or purchasing a home

Expenses in Category 1 will not be included in wages.

Expenses in Category 2 must be reported as income and included in taxable wages on your annual W-2
Form. Category 2 expenses are subject to withholding taxes (Federal, Social Security, Medicare,
state and local taxes, as appropriate). These withholding tax obligations in Category 2 expenses
will be paid by Intuit utilizing the “gross-up” method, except for the relocation allowance, which
will have taxes withheld at time of payment. The gross-up method pays additional taxes to the
taxing authorities intended to minimize the tax burden associated with these expenses when they are
reported as income to you. For example, combined income of spouse and other additional income can
have an impact on your personal tax rates and Intuit does not take those personal tax factors into
consideration.

If certain moving expenses are incurred which are paid personally by the employee and are not
reimbursed by the Company, the employee may be entitled, if all other guidelines are met, to claim
these expenses as deductible moving expenses on their personal income tax return. It is the
employee’s responsibility to understand the applicable tax laws and to substantiate any deduction
claimed on their income tax return. For further reference, IRS Publication 521 is a helpful guide
to the tax treatment of moving expenses.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

TAX INFORMATION (continued)

Record-Keeping and Gross-Up Procedures

You must retain copies of receipts and statements of expenses incurred in connection with your
relocation. It is your responsibility to substantiate relocation expense claims submitted to
Intuit.

The gross-up allowance for Federal, State, Local, Social Security and Medicare tax liabilities will
be coordinated by PLUS. The additional withholding tax that is paid will be reported by Intuit on
your W-2. This gross up allowance will be calculated throughout the
year and you will be notified of the results of the gross up calculation at the end of the year.

Processing of Expenditures

Relocation expenses and normal business expenses should not be combined on a single expense
report. Relocation expenses must be processed through PLUS. Business expense reimbursement is
processed separately by Intuit. Any business expenses will be governed by the published guidelines
in effect for Intuit business travel.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

FINDING YOUR NEW HOME

Home Finding Trip / Rental Assistance

Intuit offers home finding or rental assistance, at no cost to the employee, through PLUS.
PLUS specializes in helping transferees locate the property and neighborhood that best meets the
employee’s needs. If the employee wishes to use this service, your consultant will be able to
explain the program.

Reimbursement of expenses for your home/apartment search will be provided for the employee and
spouse/partner for two round-trip visits to the new location for a total of ten (10) nights.

Round trip coach airfare for you and your spouse, but not for your children (arranged through
Intuit travel, 1-888-417-5478) or mileage at prevailing IRS reimbursement of personal auto used,
will be provided. Intuit will also provide for reasonable expenses for lodging, your meals and
incidental expenses to be covered at $50 a day for employee or $75 a day if accompanied by spouse /
partner. The rental of a full size automobile will be arranged by Intuit Travel. Actual and
reasonable childcare expenses for your children while you are on your home finding trip, not to
exceed ten (10) days, will be covered.

Other expenses such as telephone, laundry / dry cleaning, entertainment, are not
reimbursable expenses.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

NEW HOME MORTGAGE

New Home Mortgage

Applying for a mortgage can be a time consuming and frustrating process. To simplify this
process, Intuit has coordinated for certain customer service benefits with Wells Fargo Bank. This
is an optional service that is offered you to make the relocation process smoother. You may choose
a lender outside of this program.

The benefits of using Wells Fargo Bank, with which Intuit has made special arrangement, are as
follows:

	 	 ̈	 	 Competitive rates for transferring employees
	 
	 	 ̈	 	Pre-approval prior to your home finding trip
	 
	 	 ̈	 	Prompt mortgage approval and processing turn-around times
	 
	 	 ̈	 	 Reduced documentation requirements
	 
	 	 ̈	 	 Credit of working spouse income

WELLS FARGO BANK

Using this mortgage service can offer many advantages including an expedited process, credit
approval before house hunting, competitive rates and the availability of a variety of mortgage
products and fixed lender fees.

The Wells Fargo Home Mortgage team can be reached at:

1-800-457-4663, Monday through Friday, 5am-9pm PST.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

MOVING YOUR HOUSEHOLD GOODS

HOUSEHOLD GOODS SHIPMENT

PLUS has contracted with Mesa Systems, a United Van Lines Agent, to provide you with your
household goods shipment

You must contact your Personal Move Manager to establish a preliminary schedule as household goods
shipments can take up to three weeks to schedule. A representative from the moving company will
be contacting you to arrange for a pre-move survey. This person will work with you in all
subsequent scheduling of packing, moving and delivery.

The following expenses and services are covered:

	 	 ̈	 	 Packing, shipping, partial unpacking and one time debris removal of boxes
	 
	 	 ̈	 	 Shipment of up to 2 automobiles, if the move is over 500 miles
	 
	 	 ̈	 	 Storage of household goods for 60 days
	 
	 	 ̈	 	 Full Replacement Value Insurance
	 
	 	 ̈	 	 Service charges for disconnecting and reconnecting appliances

The following expenses and services are not covered:

	 	 ̈	 	Shipment of hazardous materials such as explosives, chemicals, flammable materials,
firearms, garden chemicals.
	 
	 	 ̈	 	Shipment of firewood, lumber or other building materials.
	 
	 	 ̈	 	 Shipment and/or boarding of household pets and livestock.
	 
	 	 ̈	 	 Removal or disassembling or installation of carpeting, drapery rods, storage sheds or
other permanent fixtures.
	 
	 	 ̈	 	 Shipment of snowmobiles, boats, recreational vehicles, satellite dishes and unusually
heavy or cumbersome materials.
	 
	 	 ̈	 	 Valuables such as jewelry, currency, dissertations or publishable papers, and other
collectibles or items of extraordinary value.
	 
	 	 ̈	 	 Shipment of plants, food, wine collections or other perishables.
	 
	 	 ̈	 	 Overtime charges. Such charges may be incurred; however, they will be at your own
expense. This includes time for packing and/or delivery during the evening
hours and on the weekends, including all holidays.

This is not a complete list of the exclusions to the Plan. You should discuss any questions with
your Personal Move Manager.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

MOVING YOUR HOUSEHOLD GOODS (Continued)

Be sure to be home or leave a personal representative present during the packing/loading
operation and at time of delivery. Delivery consists of placing boxes in designated rooms, setting
up beds and removing any loose packing materials. It does not include putting goods away or
rearranging furniture. If you are considering doing some of your own packing, please discuss with
your Personal Move Manager any limitations on their liability for packed by owner (PBO) items.

Please pay special attention to some important papers you will be asked to sign. The Bill of Lading
authorizes your release of your household goods to the driver during transit. The Inventory List
is the most important factor for any future damage claim. This list is considered the legal count
of your belongings and also indicates their condition at the time they are released to the driver.
It is important before signing that you make sure that the Inventory form lists every item in your
shipment and that the entries regarding the condition of each item are correct. You have the right
to note any disagreement. When your shipment is delivered, if an item is missing or damaged, your
ability to recover from the mover for any loss or damage may depend on the notations made.

It is the employee’s responsibility to check off items, as they are unloaded. Only items found on
this inventory list will be recognized in any future claims settlement. It is the employee’s
responsibility to note any damage to your residence or automobile at time of delivery. You are
allowed 100 days from date of delivery to file a damage claim on
your personal household goods. All claims must be included in one
report.

Storage

Every effort should be made to plan for a direct move of household goods to your final
destination. Unloading goods and placing them in temporary storage, for any period, can double the
cost of a move and increase the risk of damage to your items. Storage costs incurred beyond 60 days
will be borne by the employee. Storage includes the cost of putting goods into storage and one
delivery to your permanent residence. Only one complete delivery will be authorized to your
permanent residence.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

MOVING YOUR HOUSEHOLD GOODS (Continued)

Automobiles

You may ship up to two automobiles via commercial carrier if the move is over 500 miles.
Insurance on such vehicles will be provided; however, vehicles that are shipped are not eligible
for mileage reimbursement. If the distance is less than 500 miles, Intuit will ship one automobile
and the second automobile will be driven. Mileage will be reimbursed based on the current IRS
mileage reimbursement rate.

If autos are shipped, no personal items may be left in the auto, due to liability reasons. Antique
or classic cars, or cars that are not in working order are the responsibility of the employee. If
the employee elects to drive a motor home to the new location, reasonable in-transit expenses will
be reimbursed, only if the motor home counts as one of the covered two vehicles. The cost of the
shipment of any automobile cannot be more than the NADA blue book value of the car. Campers and
Trailers: Transportation of pull-behind campers and trailers is not a covered expense.

Pets

Intuit will not pay for the cost of shipping your household pets to the new location. Your
Relocation Allowance should be utilized for this expense, including the cost of special crates and
any required quarantines and boarding expenses while your goods are in transit. Your Personal Move
Manager can put you in touch with firms that specialize in shipping pets, if you require such a
service.

Insurance

Insurance at full replacement value is provided for your personal property while in transit.
The insurance does not cover accounts, bills, deeds, evidence of debt, currency, letters of credit,
passports, airline or other tickets, securities, bullion, precious stones, stamp or coin
collections and other collectibles.

You may need to consult with your personal insurance policy representative for an explanation of
coverage for items in transit, as well as coverage for your vacant property at the former location
and/or new location, if applicable.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

EN ROUTE GUIDELINES

Final
Travel to New Location

Coach airfare for employee and family must be made fourteen (14) days in advance through
Intuit travel. If driving, the mileage will be reimbursed at the prevailing IRS reimbursement
rate. Automobile maintenance costs will be the employee’s responsibility. Intuit will provide for
reasonable lodging and a meal per diem at $50/day for employee and $35/day per additional person
relocating with the employee. The employee should maintain all receipts to assist with tax
reporting.

Temporary
Living

Upon arrival in the new location, temporary living (if necessary) will be provided for up to
60 days prior to establishing a permanent residence. PLUS will arrange for a fully furnished
apartment with laundry and cooking facilities. If the employee has elected to ship both vehicles
Intuit will provide a full size rental automobile for sixty (60) days. Arrangements for the rental
car are to be made through Intuit travel.

Daily living expenses will be the responsibility of the employee.

If a hotel is utilized, Intuit will cover up to seven (7) nights of lodging and provide a daily
meal per diem of $50 for employee and $35/day per additional person relocating with the employee
for up to seven (7) days.

If an employee is traveling on Intuit business during this period, expenses incurred should be
charged in the usual manner and not as a relocation expense.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

MISCELLANEOUS

Relocation Allowance

A lump sum payment of one (1) month annual base salary will be provided. This amount will be
processed on your start or transfer date. This amount will be subject to tax withholding. Request
this allowance through PLUS. This allowance is provided to cover the myriad of relocation expenses
that might be incurred that are not specifically stated as directly reimbursable by Intuit.
Expenses that might fall under this category are:

	 	 ̈	 	 Shipping of items not covered by the Household Goods Shipment provisions described above
	 
	 	 ̈	 	Removal or installation of articles not paid under the moving guideline
	 
	 	 ̈	 	 Charges for transportation or boarding of pets
	 
	 	 ̈	 	Appraisals of antiques or art objects for insurance purposes
	 
	 	 ̈	 	Vehicle registration
	 
	 	 ̈	 	Cleaning or repairs
	 
	 	 ̈	 	Motor vehicle registration fees
	 
	 	 ̈	 	Extermination, fumigation
	 
	 	 ̈	 	 Removal, installation of window coverings
	 
	 	 ̈	 	Deposits
	 
	 	 ̈	 	Utility and phone hookups
	 
	 	 ̈	 	 Drivers license

It is the employee’s responsibility to manage these costs so that the allowance will be sufficient
to meet your needs. You may keep any unused portion of these funds.

Although Intuit does not require receipts, it is important that you keep receipts of all your
expenses to assist you when filing your tax return at year-end.

Medical
Coverage

Special attention should be paid to your medical benefits during this time. The company’s
medical plans may be network-oriented. If your family does not join you immediately, they may not
qualify for full medical benefits because they are outside the network. It is important that you
are informed about the medical benefits you and your family will receive during the transition to
your new location. Contact Intuit’s HR Shared Services Group to discuss your specific situation.
They can be reached at 1-800-819-1620.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

MISCELLANEOUS (Continued)

Personal Legal Matters

If you are relocating out of your current state, consider how your relocation could affect
your wills and estate planning. It is advisable to review your estate plan with an estate lawyer
familiar with the laws in your new location.

Lease
Termination

Rental obligations arising from the cancellation of a lease will be reimbursed up to a maximum
of three month’s rent at the old location and any security deposit lost due to early termination.
The employee is to provide a copy of the lease and written proof of payment.

Paid Time Off

After your start date paid time away from work will be limited to five days. Absences must be
approved by the employee’s manager and are limited to the following uses: final move to new
location; closing on either sale of old home or purchase of new home; and packing and loading days
for shipment of personal household goods and unpacking at final destination.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

Relocation Repayment Agreement

	1.	 	I agree to enter into this Relocation Repayment Agreement in consideration of receiving
benefits pursuant to Intuit’s Relocation Policy in connection with my hire or transfer by
Intuit.

	2.	 	I agree that should I resign my employment during my relocation or within 1 year from my
hire/transfer date, I shall not be entitled to receive any further relocation benefits,
including reimbursements.

	3.	 	I agree that should I resign my employment within 1 year from my hire/transfer date, I will
reimburse Intuit a pro rata portion of any and all relocation expenses that were made to me or
on my behalf in connection with my relocation and subsequent move. The proration will be made
by subtracting the number of whole or partial months since my hire/transfer date from twelve,
dividing that total by twelve and then multiplying that result by the pre-tax amount of all
relocation benefits paid to me or made on my behalf.

	4.	 	I agree that Intuit may recover any pro rata portion of relocation benefits due under
Paragraph 3 above, by deducting such amounts from my final paycheck or from any other payments
Intuit would otherwise make to me, as allowed by law, and I hereby expressly authorize Intuit
to make such deductions. In the event such deductions are insufficient to cover the total
refund reimbursement, I agree to pay Intuit all remaining amounts within 14 days of my
resignation.

	5.	 	I agree that that all relocation expenses not submitted to PLUS Relocation within 1 year of
my hire/transfer date are my responsibility, and will not be reimbursed by Intuit.

	6.	 	I understand that the relocation benefits offered to me pursuant to the Relocation Policy
constitute all the relocation benefits for which I am eligible to receive. I understand that
I have no right to any changes to my relocation benefits unless those changes are agreed to in
writing signed by an authorized Intuit HR manager. I further agree that nothing in this
Relocation Repayment Agreement is intended to create a contract or a guarantee of employment
by Intuit. I understand and agree that my employment is at will and that Intuit or I may
terminate it at any time.

	7.	 	This is the entire agreement between the Company and me with respect to relocation repayment
and supersedes all prior negotiations and agreements, whether written or oral, relating to
this subject matter.

	 	 	 	 	 
	 

	 	 
	 	 
	Employee’s Signature

	 	Date
	 	Social Security #
	 

	 	 	 	Relocation Tax Purposes

	 	 	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	HR Signature

	 	 	 	 	 	Date	 	 
	 

	 	 
	 	 	 	 	 	 

 

			
	               EXECUTIVE
	 	November 2005               

 

 

HOME SALE

Home Marketing Assistance

Selling your current home is one of the most important parts of the relocation program. As such,
Intuit has arranged for Home Marketing Assistance through PLUS. The Home Marketing Assistance
program offers you professional marketing assistance through your Personal Move Manager in planning
and executing a strategy for successfully selling your home.

Your Personal Move Manager will discuss the details of the program during your initial call and
will arrange to have a qualified real estate associate contact you for an appointment to visit your
home. This appointment is for informational purposes only to assist you in developing an effective
marketing strategy for your home. You are not obligated to list your home with this particular
agent.

Your real estate agent will be asked to prepare a Broker’s Market Analysis (BMA) which will be
utilized by PLUS in preparing a comprehensive marketing plan. This plan will include suggestions
on how to prepare your home for sale, recommended listing price and anticipated sales price range,
information on comparable listings and recent sales, a designated buyer profile for your property
and creative home sale promotion ideas. You are encouraged to review this information directly
with both your Personal Move Manager and your real estate agent.

Your Personal Move Manager will monitor the entire listing effort, including a review of competing
homes and an evaluation of recently closed properties, to ensure that a realistic pricing strategy
is in place. In addition, your Personal Move Manager will coordinate proactive market strategy
call sessions with your selected agent to follow up on buyer and broker feedback, open house events
and showing activity.

During your Home Marketing Assistance period, you must present any and all offers to your Personal
Move Manager for review and approval to be eligible for the benefits offered under the home sale
assistance program.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

HOME SALE (continued)

Disclosure

Disclosure is defined as the duty of the seller to make known or public to a buyer the condition of
the property, particularly any defect that could affect its value, habitability or desirability.
Failure to do so could constitute, at a minimum, misrepresentation and, more likely, fraud.

It is, therefore, your responsibility as the homeowner to disclose the full condition of your
property to PLUS and any potential buyers. Please be advised that some states require by law a
separate, specific disclosure form for all property transfers. Additional forms are required by
the state of California, and if appropriate, will be provided to you by your Personal Move Manager.
Your Personal Move Manager will also advise you accordingly if completion of such a form is
required in your departure move location.

Should you generate a sale, all inspections must be disclosed to the buyer. Your agent, however,
should encourage the buyer to have their own inspections performed at their own expense.

Should you fail to disclose complete and accurate information which is subsequently discovered, you
may be held responsible for all expenses involved in correcting the defects and any possible
litigation as a result of non-disclosure.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

HOME SALE (Continued)

Selling Your Home

Intuit provides a professionally administered home sale assistance plan through PLUS, which offers
the relocating homeowner several excellent benefits, including:

	 	 ̈	 	 A resale plan that significantly reduces the tax burden to you and Intuit
	 
	 	 ̈	 	 Selection and management of brokers and other service providers
	 
	 	 ̈	 	 Reduced costs and fewer expense reimbursement requests
	 
	 	 ̈	 	 Objective advice concerning repairs and remodeling prior to offering home for sale
	 
	 	 ̈	 	 Assistance in pricing, resale strategy and negotiations
	 
	 	 ̈	 	Customary home sale closing costs will be covered by Intuit.

Intuit offers a Home Sale Incentive program that will pay the employee up to 2% of the home sale
price if the home is sold within 60 days of the listing and if the employee utilizes the Home Sale
Assistance program described below. This incentive will be paid to employee at the time of the
equity reimbursement from PLUS under the Home Sale Assistance program.

Eligibility
for Home Sale Assistance

Each home owning employee is responsible for the sale of his or her primary owned residence,
subject to the following guidelines and restrictions:

	1.	 	Definition of Eligible Property. To be eligible for Home Sale Assistance, the
residence must be a single unit (house), or two family residence, town home or condominium and
must be the present principal dwelling of the transferred employee. Vacant land, mobile
homes, boats, cooperatives, single family dwellings on more than 5 acres, vacation homes,
summer cottages, and property held for investment are not eligible.
	 
	2.	 	Ownership and Title. The home must be the primary residence of the employee, owned
by the employee and/or the employee’s spouse or significant other on the date the employee is
requested in writing by Intuit to relocate. The employee must be able to deliver clear title
to the property.
	 
	3.	 	Condition and Requirements. The home must meet the following requirements:

	 	 ̈	 	 The home must be completed, that is, not under construction or undergoing
renovation.
	 
	 	 ̈	 	 The home must be a one-or two-family principal residence. Vacation homes, second
homes, mobile homes, vacant land and cooperatives are excluded from eligibility.
	 
	 	 ̈	 	 The home must not contain or be built near hazardous materials.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

HOME SALE (Continued)

4. Real Estate Agent.The real estate agent selected to list the home for sale MUST:
Be approved by PLUS prior to listing the home, and include an Exclusion Clause in the listing
contract (content of waiver will be provided and approved by PLUS).

5. Pricing the Home. PLUS will provide the employee with valuation and pricing information and
with repair and improvement advice prior to placing the primary residence on the market for sale.
The employee may list the home for sale at any price acceptable to him or her provided the price
does not exceed 107% of the average of the BMA. If this occurs, a second BMA will be requested.

6. Accepting Sales Offers. When an offer is received on the home, the employee must
not sign the offer or accept any earnest monies from the buyer or broker. PLUS will
review the terms and conditions of the offer to ensure that it is bona fide, that the buyer is
qualified, and that the terms and net amount of the offer (calculated according to the provisions
of this guideline) are acceptable to the employee. If these conditions are met, PLUS will extend
to the employee a written contract to purchase the home at an amount and terms equal to the offer.
This is known as a Buyer Value Option Sale. This written offer from PLUS is the only contract of
sale the employee will sign.

7. Buyer Value Option Home Sale. Intuit has provided a PLUS -administered program as a
means of minimizing the tax burden to both Intuit and the employee. Adherence to all steps of the
home sale guideline (i.e., selling the home to PLUS, and their subsequent sale to the buyer) is
required to provide the optimum tax advantage and protection on costs to sell the home in the old
location. An employee’s failure to conform fully to the guideline requirements of this section may
jeopardize the tax integrity of the program. In the event that an employee’s actions compromise
the tax advantages of the guideline, the employee will be responsible for the personal income taxes
on all reimbursed amounts, and no tax assistance will be provided from company on resale costs.
You should consult with your tax planner to understand the tax advantages that may be available
through this program.

8. Loan Payoff. The existing financing on the home, if any, will remain in place at the
discretion of PLUS until the sale to the ultimate buyer closes. At closing of the ultimate sale,
the loan will be paid in full.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

9. Financial Responsibilities of Employee. The employee is responsible for:

	 	 ̈	 	 All costs of maintaining the home (mortgage, homeowner’s dues, taxes, insurance,
utilities, and maintenance) until the contract or vacate date, whichever is later, between
PLUS and the employee.
	 
	 	 ̈	 	 Required repairs, if any, under the terms of the contract, plus any other costs agreed
to in the terms of the contract of sale which are not customarily reimbursed or paid by
Intuit under this guideline.
	 
	 	 ̈	 	 Any seller concessions or seller-paid discount points for the buyer
	 
	 	 ̈	 	 Any costs associated with “curing” defects in title.

PLUS will account for these costs in their calculation of the employee’s equity. The employee will
not be required to make any up front payments. Those payments will be made by PLUS on behalf of
the employee, from funds withheld from the employee’s final equity settlement. All equity payments
to the employee will be made by PLUS.

Financial Responsibilities of PLUS and Intuit. The normal and customary costs to sell the home
will be paid by Intuit through PLUS at closing to the ultimate buyer. The employee who utilizes
the buyer value home sale provisions of this guideline will not pay specific costs of the sale,
which includes:

	 ̈	 	 Standard real estate broker’s commission for the area
	 
	 ̈	 	 Legal, escrow fees, and/or attorney’s fees
	 
	 ̈	 	 Title insurance (if customarily paid by the seller)
	 
	 ̈	 	 Reasonable closing expenses customarily paid by the seller, to include:

	 	o	 	Revenue Stamps
	 
	 	o	 	Recording Fees
	 
	 	o	 	Mortgage Cancellation fees
	 
	 	o	 	Transfer Taxes
	 
	 	o	 	Lender required Inspections
	 
	 	o	 	Application Fee
	 
	 	o	 	Mortgage Prepayment Penalties up to a maximum of $5,000

 

			
	               EXECUTIVE
	 	November 2005               

 

 

HOME SALE (Continued)

Unassisted Sale of Existing Primary Residence (Homeowners)

The employee may elect to sell the home unassisted by PLUS, and decline to use the Buyer Value
Option to minimize tax expenses. The unassisted sale of the home by the employee is not
encouraged by Intuit, but in the event it occurs, the employee will be reimbursed the normal
costs to sell the home as specified above, but will not receive tax protection from Intuit on
those reimbursed amounts and will not be eligible to receive the 2% Home Sale Incentive payment
described above.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

HOME PURCHASE

Home Purchase Assistance

Your Personal Move Manager can refer you to a Realtor who is a member of their Network
Program. These real estate professionals are accustomed to working with relocating employees and
are qualified to assist you with area counseling and home finding assistance. In addition, use of
a preferred Realtor will better enable your Personal Move Manager to assist you in monitoring your
Realtor’s performance and assist you in getting maximum benefits under these relocation guidelines.

If you wish to work with a specific agent, you must notify your Personal Move Manager prior to your
Home Finding trip. Your Personal Move Manager will talk with the agent to confirm that they have
the necessary qualifications to assist you.

Purchasing
Closing Costs

There are numerous expenses associated with the closing of a new home. Intuit will arrange
for you to be reimbursed for normal and customary buyer’s expenses, provided that the new home
closing occurs within one (1) year of your initiation date. Those fees and charges most commonly
covered are:

Non-recurring Closing Costs:

	 	 ̈	 	 Title insurance (when applicable)
	 
	 	 ̈	 	 Transfer taxes (when applicable)
	 
	 	 ̈	 	 Reasonable attorney fees
	 
	 	 ̈	 	 Real estate appraisal
	 
	 	 ̈	 	 Credit report
	 
	 	 ̈	 	 Recording fees
	 
	 	 ̈	 	 Survey expense (if required)
	 
	 	 ̈	 	 Title search, examination and opinion
	 
	 	 ̈	 	 State deed tax
	 
	 	 ̈	 	 Inspections required by lender, such as pest, structural/mechanical, water/well, septic,
and radon, up to a maximum of $500.
	 
	 	 ̈	 	 Notary fees

Loan Origination Fees/Discount Points:

	 	 	 	If your agent participates in the Broker Network program, loan origination fees/discount
points will be paid in addition to non-recurring costs, up to a maximum of 1%. Otherwise,
points will not be reimbursed.

 

			
	               EXECUTIVE
	 	November 2005               

 

 

HOME PURCHASE (Continued)

The following costs will not be reimbursed:

	 	 ̈	 	 real estate agent’s commissions
	 
	 	 ̈	 	 Property tax, insurance or interest
	 
	 	 ̈	 	 Expenses normally charged to the seller
	 
	 	 ̈ 	 	Soil Reports (Geological Surveys)
	 
	 	 ̈ 	 	Home Warranty Insurance Program
	 
	 	 ̈	 	 Private Mortgage Insurance
	 
	 	 ̈	 	 Improvement Assessments by State, City, County taxing authorities

Reimbursement of these items will be coordinated by PLUS and will be considered taxable income.
Loan origination fees and/or discount points are considered tax deductible; therefore, a tax
gross-up is not required and will not be provided. However, the remaining non-recurring closing
costs will be grossed-up for tax purposes. By utilizing an Intuit approved lender the reimbursable
costs can be direct billed, unless you are an executive officer covered by the restrictions of
Sarbanes/Oxley Act.

 

			
	               EXECUTIVE
	 	November 2005

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